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House File 893 - IntroducedA Bill ForAn Act 1relating to state taxation and economic development
2activities, including future tax contingencies, state
3income tax deductions, tax credits, the state inheritance
4tax, the sales and use tax, disaster recovery housing,
5energy infrastructure, telehealth parity, consumer loans,
6local regulations, and other properly related matters, and
7including effective date and retroactive applicability
8provisions.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2FUTURE TAX CHANGES
3 Section 1. 2018 Iowa Acts, chapter 1161, section 133, is
4amended by striking the section and inserting in lieu thereof
5the following:
6SEC. 133. EFFECTIVE DATE. This division of this Act takes
7effect January 1, 2023.
8DIVISION II
9child dependent and development tax credits
10 Sec. 2. Section 422.12C, subsection 1, paragraphs f and g,
11Code 2021, are amended to read as follows:
12f. For a taxpayer with net income of forty thousand dollars
13or more but less than forty-five ninety thousand dollars,
14thirty percent.
15g. For a taxpayer with net income of forty-five ninety
16 thousand dollars or more, zero percent.
17 Sec. 3. Section 422.12C, subsection 2, paragraph a, Code
182021, is amended to read as follows:
19a. The taxes imposed under this subchapter, less the amounts
20of nonrefundable credits allowed under this subchapter, may
21be reduced by an early childhood development tax credit equal
22to twenty-five percent of the first one thousand dollars
23which the taxpayer has paid to others for each dependent, as
24defined in the Internal Revenue Code, ages three through five
25for early childhood development expenses. In determining the
26amount of early childhood development expenses for the tax year
27beginning in the 2006 calendar year only, such expenses paid
28during November and December of the previous tax year shall
29be considered paid in the tax year for which the tax credit
30is claimed. This credit is available to a taxpayer whose net
31income is less than forty-five ninety thousand dollars. If the
32early childhood development tax credit is claimed for a tax
33year, the taxpayer and the taxpayer’s spouse shall not claim
34the child and dependent care credit under subsection 1.
35 Sec. 4. RETROACTIVE APPLICABILITY. This division of this
-1-1Act applies retroactively to tax years beginning on or after
2January 1, 2021.
3DIVISION III
4COVID-19 RELATED GRANTS — TAXATION
5 Sec. 5. Section 422.7, subsection 62, Code 2021, is amended
6to read as follows:
762. a. Subtract, to the extent included, the amount of
8any financial assistance qualifying COVID-19 grant provided to
9an eligible small issued to an individual or business by the
10economic development authority under the Iowa small business
11relief grant program created during calendar year 2020 to
12provide financial assistance to eligible small businesses
13economically impacted by the COVID-19 pandemic, the Iowa
14finance authority, or the department of agriculture and land
15stewardship.
16b. For purposes of this subsection, “qualifying COVID-19
17grant” includes any grant identified by the department by rule
18that was issued under a grant program administered by the
19economic development authority, Iowa finance authority, or
20the department of agriculture and land stewardship to provide
21financial assistance to individuals and businesses economically
22impacted by the COVID-19 pandemic.
23c. The economic development authority, Iowa finance
24authority, or the department of agriculture and land
25stewardship shall notify the department of any COVID-19 grant
26program that may qualify under this subsection in the manner
27and form prescribed by the department.
28d. This subsection is repealed January 1, 2024, and does not
29apply to tax years beginning on or after that date.
30 Sec. 6. Section 422.35, subsection 30, Code 2021, is amended
31to read as follows:
3230. a. Subtract, to the extent included, the amount of
33any financial assistance qualifying COVID-19 grant provided
34to an eligible small issued to a business by the economic
35development authority under the Iowa small business relief
-2-1grant program created during calendar year 2020 to provide
2financial assistance to eligible small businesses economically
3impacted by the COVID-19 pandemic, the Iowa finance authority,
4or the department of agriculture and land stewardship.
5b. For purposes of this subsection, “qualifying COVID-19
6grant” includes any grant identified by the department by rule
7that was issued under a grant program administered by the
8economic development authority, Iowa finance authority, or
9the department of agriculture and land stewardship to provide
10financial assistance to businesses economically impacted by the
11COVID-19 pandemic.
12c. The economic development authority, Iowa finance
13authority, or the department of agriculture and land
14stewardship shall notify the department of any COVID-19 grant
15program that may qualify under this subsection in the manner
16and form prescribed by the department.
17d. This subsection is repealed January 1, 2024, and does not
18apply to tax years beginning on or after that date.
19 Sec. 7. EFFECTIVE DATE. This division of this Act, being
20deemed of immediate importance, takes effect upon enactment.
21 Sec. 8. RETROACTIVE APPLICABILITY. This division of this
22Act applies retroactively to March 23, 2020, for tax years
23ending on or after that date.
24DIVISION IV
25federal paycheck protection program
26 Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM.
27Notwithstanding any other provision of the law to the contrary,
28for any tax year ending after March 27, 2020, Division N, Tit.
29II, subtit.B, §276 and §278(a), of the federal Consolidated
30Appropriations Act, 2021, Pub.L. No.116-260, applies in
31computing net income for state tax purposes under section 422.7
32or 422.35.
33 Sec. 10. EFFECTIVE DATE. This division of this Act, being
34deemed of immediate importance, takes effect upon enactment.
35DIVISION V
-3-1SCHOOL TUITION ORGANIZATION TAX CREDIT
2 Sec. 11. Section 422.11S, subsection 1, Code 2021, is
3amended to read as follows:
41. a. The taxes imposed under this subchapter, less the
5credits allowed under section 422.12, shall be reduced by a
6school tuition organization tax credit equal to sixty-five
7percent the following percentage of the amount of the voluntary
8cash or noncash contributions made by the taxpayer during the
9applicable tax year to a school tuition organization, subject
10to the total dollar value of the organization’s tax credit
11certificates as computed in subsection 8.:
12(1) For the tax year beginning on or after January 1, 2021,
13but before January 1, 2022, sixty-five percent.
14(2) For the tax year beginning on or after January 1, 2022,
15but before January 1, 2023, seventy-two percent.
16(3) For the tax year beginning on or after January 1, 2023,
17but before January 1, 2024, seventy-eight percent.
18(4) For the tax year beginning on or after January 1, 2024,
19but before January 1, 2025, eighty-five percent.
20(5) For tax years beginning on or after January 1, 2025,
21eighty-seven percent.
22b. The tax credit shall be claimed by use of a tax credit
23certificate as provided in subsection 7.
24 Sec. 12. Section 422.11S, subsection 8, paragraph a,
25subparagraph (2), Code 2021, is amended to read as follows:
26(2) (a) “Total approved tax credits” means for the 2006
27calendar year, two million five hundred thousand dollars, for
28the 2007 calendar year, five million dollars, for calendar
29years beginning on or after January 1, 2008, but before January
301, 2012, seven million five hundred thousand dollars, for
31calendar years beginning on or after January 1, 2012, but
32before January 1, 2014, eight million seven hundred fifty
33thousand dollars, for calendar years beginning on or after
34January 1, 2014, but before January 1, 2019, twelve million
35dollars, and for calendar years beginning on or after January
-4-11, 2019, but before January 1, 2020, thirteen million dollars,
2and for calendar years beginning on or after January 1, 2020,
3but before January 1, 2022, fifteen million dollars, for
4calendar years beginning on or after January 1, 2022, but
5before January 1, 2023, sixteen million five hundred thousand
6dollars, for calendar years beginning on or after January 1,
72023, but before January 1, 2024, eighteen million dollars,
8for calendar years beginning on or after January 1, 2024, but
9before January 1, 2025, nineteen million five hundred thousand
10dollars, and for calendar years beginning on or after January
111, 2025, twenty million dollars.
12(b) (i) During any calendar year beginning on or after
13January 1, 2022, if the amount of awarded tax credits from the
14preceding calendar year are equal to or greater than ninety
15percent of the total approved tax credits for the current
16calendar year, the total approved tax credits for the current
17calendar year shall equal the product of ten percent multiplied
18by the total approved tax credits for the current calendar year
19plus the total approved tax credits for the current calendar
20year.
21(ii) If total approved tax credits are recomputed pursuant
22to subparagraph subdivision (i), the total approved tax credits
23shall equal the previous total approved tax credits recomputed
24pursuant to subparagraph subdivision (i) for purposes of future
25recomputations under subparagraph subdivision (i), provided
26that the maximum total approved tax credits recomputed pursuant
27to this subparagraph division (b) shall not exceed twenty
28million dollars in a calendar year.
29 Sec. 13. RETROACTIVE APPLICABILITY. This division of this
30Act applies retroactively to January 1, 2021, for tax years
31beginning on or after that date.
32DIVISION VI
33TARGETED JOBS WITHHOLDING CREDIT
34 Sec. 14. Section 403.19A, subsection 3, paragraph c,
35subparagraph (2), Code 2021, is amended to read as follows:
-5- 1(2) The pilot project city and the economic development
2authority shall not enter into a withholding agreement after
3June 30, 2021 2026.
4DIVISION VII
5ECONOMIC EMERGENCY FUND — EXCESS MONEYS
6 Sec. 15. Section 8.55, subsection 2, Code 2021, is amended
7by striking the subsection and inserting in lieu thereof the
8following:
92. The maximum balance of the fund is the amount equal to
10two and one-half percent of the adjusted revenue estimate for
11the fiscal year. If the amount of moneys in the fund exceeds
12the maximum balance, moneys in excess of the maximum balance
13shall be distributed as follows:
14a. An amount equal to not more than five percent of
15the adjusted revenue estimate for the fiscal year shall be
16transferred to the general fund of the state.
17b. The remainder of the excess, if any, shall be transferred
18to the taxpayer relief fund created in section 8.57E.
19 Sec. 16. EFFECTIVE DATE. This division of this Act takes
20effect July 1, 2022.
21DIVISION VIII
22TAXPAYER RELIEF FUND — TAX CREDIT
23 Sec. 17. Section 8.57E, subsection 2, Code 2021, is amended
24to read as follows:
252. Moneys in the taxpayer relief fund shall only be used
26pursuant to appropriations or transfers made by the general
27assembly for tax relief, including but not limited to increases
28in the general retirement income exclusion under section 422.7,
29subsection 31, or reductions in income tax rates. During
30each fiscal year beginning on or after July 1, 2021, in which
31the balance of the taxpayer relief fund equals or exceeds one
32hundred twenty million dollars, there is transferred from the
33taxpayer relief fund to the Iowa taxpayer relief tax credit
34fund created in section 422.12O the entire balance of the
35taxpayer relief fund to be used for the Iowa taxpayer relief
-6-1tax credit in accordance with section 422.12O, subsection 5.
2 Sec. 18. Section 257.21, subsection 2, Code 2021, is amended
3to read as follows:
42. The instructional support income surtax shall be imposed
5on the state individual income tax for the calendar year during
6which the school’s budget year begins, or for a taxpayer’s
7fiscal year ending during the second half of that calendar year
8and after the date the board adopts a resolution to participate
9in the program or the first half of the succeeding calendar
10year, and shall be imposed on all individuals residing in the
11school district on the last day of the applicable tax year.
12As used in this section, “state individual income tax” means
13the taxes computed under section 422.5, less the amounts of
14nonrefundable credits allowed under chapter 422, subchapter II,
15except for the Iowa taxpayer relief tax credit allowed under
16section 422.12O.
17 Sec. 19. NEW SECTION. 422.12O Iowa taxpayer relief tax
18credit — fund.
191. For purposes of this section, unless the context
20otherwise requires:
21a. “Eligible individual” means, with respect to a tax year,
22an individual who makes and files an individual income tax
23return pursuant to section 422.13. “Eligible individual” does
24not include an estate or trust, or an individual for whom an
25individual income tax return was not timely filed, including
26extensions.
27b. “Unclaimed tax credit” means, with respect to a tax
28year, the aggregate amount by which the Iowa taxpayer relief
29tax credits that were eligible to be claimed by eligible
30individuals, if any, exceeds the Iowa taxpayer relief tax
31credits actually claimed by eligible individuals, if any.
322. The taxes imposed under this subchapter, less the credits
33allowed under this subchapter except the credits for withheld
34tax and estimated tax paid in section 422.16, shall be reduced
35by an Iowa taxpayer relief tax credit to an eligible individual
-7-1for the tax year beginning January 1 immediately preceding July
21 of any fiscal year during which a transfer, if any, is made
3from the taxpayer relief fund in section 8.57E to the Iowa
4taxpayer relief tax credit fund created in this section.
53. The credit shall be equal to the quotient of the amount
6transferred to the Iowa taxpayer relief tax credit fund in
7the applicable fiscal year, divided by the number of eligible
8individuals for the tax year immediately preceding the tax year
9for which the credit in this section is allowed, as determined
10by the director of revenue in accordance with this section,
11rounded down to the nearest whole dollar. The department of
12revenue shall draft the income tax form for any tax year in
13which a credit will be allowed under this section to provide
14the information and space necessary for eligible individuals to
15claim the credit.
164. Any credit in excess of the taxpayer’s liability for the
17tax year is not refundable and shall not be credited to the tax
18liability for any following year or carried back to a tax year
19prior to the tax year in which the taxpayer claims the credit.
205. a. There is established within the state treasury
21under the control of the department an Iowa taxpayer relief
22tax credit fund consisting of any moneys transferred by the
23general assembly by law from the taxpayer relief fund created
24in section 8.57E for purposes of the credit provided in this
25section. For the fiscal year beginning July 1, 2021, and for
26each fiscal year thereafter, the department shall transfer from
27the Iowa taxpayer relief tax credit fund to the general fund
28of the state, the lesser of the balance of the Iowa taxpayer
29relief tax credit fund or an amount equal to the Iowa taxpayer
30relief tax credits claimed in that fiscal year, if any. Any
31moneys in the Iowa taxpayer relief tax credit fund which
32represent unclaimed tax credits shall immediately revert to
33the taxpayer relief fund created in section 8.57E. Interest
34or earnings on moneys in the Iowa taxpayer relief tax credit
35fund shall be credited to the taxpayer relief fund created in
-8-1section 8.57E.
2b. The moneys transferred to the general fund of the state
3in accordance with this subsection shall not be considered new
4revenues for purposes of the state general fund expenditure
5limitation under section 8.54 but instead as replacement of
6a like amount included in the expenditure limitation for the
7fiscal year in which the transfer is made.
8 Sec. 20. Section 422D.2, Code 2021, is amended to read as
9follows:
10422D.2 Local income surtax.
11A county may impose by ordinance a local income surtax as
12provided in section 422D.1 at the rate set by the board of
13supervisors, of up to one percent, on the state individual
14income tax of each individual residing in the county at the
15end of the individual’s applicable tax year. However, the
16cumulative total of the percents of income surtax imposed on
17any taxpayer in the county shall not exceed twenty percent.
18The reason for imposing the surtax and the amount needed
19shall be set out in the ordinance. The surtax rate shall be
20set to raise only the amount needed. For purposes of this
21section, “state individual income tax” means the tax computed
22under section 422.5, less the amounts of nonrefundable credits
23allowed under chapter 422, subchapter II, except for the Iowa
24taxpayer relief tax credit allowed under section 422.12O.
25 Sec. 21. EFFECTIVE DATE. This division of this Act, being
26deemed of immediate importance, takes effect upon enactment.
27 Sec. 22. RETROACTIVE APPLICABILITY. This division of this
28Act applies retroactively to January 1, 2021, for tax years
29beginning on or after that date.
30DIVISION IX
31state inheritance tax
32 Sec. 23. Section 450.10, Code 2021, is amended by adding the
33following new subsection:
34 NEW SUBSECTION. 7. a. In lieu of each rate of tax imposed
35in subsections 1 through 4, for property passing from the
-9-1estate of a decedent dying on or after July 1, 2021, but before
2July 1, 2022, there shall be imposed a rate of tax equal to
3the applicable tax rate in subsections 1 through 4, reduced by
4ten percent, and rounded to the nearest one-hundredth of one
5percent.
6b. In lieu of each rate of tax imposed in subsections 1
7through 4, for property passing from the estate of a decedent
8dying on or after July 1, 2022, but before July 1, 2023, there
9shall be imposed a rate of tax equal to the applicable tax rate
10in subsections 1 through 4, reduced by twenty percent, and
11rounded to the nearest one-hundredth of one percent.
12c. In lieu of each rate of tax imposed in subsections 1
13through 4, for property passing from the estate of a decedent
14dying on or after July 1, 2023, but before July 1, 2024, there
15shall be imposed a rate of tax equal to the applicable tax rate
16in subsections 1 through 4, reduced by thirty percent, and
17rounded to the nearest one-hundredth of one percent.
18d. In lieu of each rate of tax imposed in subsections 1
19through 4, for property passing from the estate of a decedent
20dying on or after July 1, 2024, but before July 1, 2025, there
21shall be imposed a rate of tax equal to the applicable tax
22rate in subsections 1 through 4, reduced by forty percent, and
23rounded to the nearest one-hundredth of one percent.
24e. In lieu of each rate of tax imposed in subsections 1
25through 4, for property passing from the estate of a decedent
26dying on or after July 1, 2025, but before July 1, 2026, there
27shall be imposed a rate of tax equal to the applicable tax
28rate in subsections 1 through 4, reduced by fifty percent, and
29rounded to the nearest one-hundredth of one percent.
30f. In lieu of each rate of tax imposed in subsections 1
31through 4, for property passing from the estate of a decedent
32dying on or after July 1, 2026, but before July 1, 2027, there
33shall be imposed a rate of tax equal to the applicable tax
34rate in subsections 1 through 4, reduced by sixty percent, and
35rounded to the nearest one-hundredth of one percent.
-10- 1g. In lieu of each rate of tax imposed in subsections 1
2through 4, for property passing from the estate of a decedent
3dying on or after July 1, 2027, but before July 1, 2028, there
4shall be imposed a rate of tax equal to the applicable tax rate
5in subsections 1 through 4, reduced by seventy percent, and
6rounded to the nearest one-hundredth of one percent.
7h. In lieu of each rate of tax imposed in subsections 1
8through 4, for property passing from the estate of a decedent
9dying on or after July 1, 2028, but before July 1, 2029, there
10shall be imposed a rate of tax equal to the applicable tax rate
11in subsections 1 through 4, reduced by eighty percent, and
12rounded to the nearest one-hundredth of one percent.
13i. In lieu of each rate of tax imposed in subsections 1
14through 4, for property passing from the estate of a decedent
15dying on or after July 1, 2029, but before July 1, 2030, there
16shall be imposed a rate of tax equal to the applicable tax rate
17in subsections 1 through 4, reduced by ninety percent, and
18rounded to the nearest one-hundredth of one percent.
19 Sec. 24. NEW SECTION. 450.98 Tax repealed.
20Effective July 1, 2030, this chapter shall not apply to
21property of estates of decedents dying on or after July 1,
222030. The inheritance tax shall not be imposed under this
23chapter in the event the decedent dies on or after July 1,
242030, and, to this extent, this chapter is repealed.
25 Sec. 25. NEW SECTION. 450B.8 Tax repealed.
26Effective July 1, 2030, this chapter shall not apply to
27property of estates of decedents dying on or after July 1,
282030. The qualified use inheritance tax shall not be imposed
29under this chapter in the event the decedent dies on or after
30July 1, 2030, and, to this extent, this chapter is repealed.
31 Sec. 26. CODE EDITOR DIRECTIVE. The Code editor is directed
32to remove chapters 450 and 450B from the Code and correct
33appropriate references to chapters 450 and 450B and appropriate
34references to the inheritance tax and qualified use inheritance
35tax effective July 1, 2040.
-11-1DIVISION X
2HIGH QUALITY JOBS — ELIGIBILITY REQUIREMENTS
3 Sec. 27. HIGH QUALITY JOBS — REDUCTIONS IN OPERATIONS.
41. Notwithstanding section 15.329, subsection 1, paragraph
5“b”, subparagraph (2), the economic development authority shall
6not presume that a reduction in operations is a reduction in
7operations while simultaneously applying for assistance with
8regard to a business that submits an application on or before
9June 30, 2022, if the business demonstrates to the satisfaction
10of the authority all of the following:
11a. That the reduction in operations occurred after March 1,
122020.
13b. That the reduction in operations was caused by the
14COVID-19 pandemic.
152. The economic development authority shall consider
16whether the benefit of the project proposed by a business
17under subsection 1 outweighs any negative impact related to
18the business’s reduction in operations. The business shall
19remain subject to all other eligibility requirements pursuant
20to section 15.329.
213. This section is repealed July 1, 2022.
22DIVISION XI
23housing trust fund
24 Sec. 28. Section 428A.8, subsection 3, Code 2021, is amended
25to read as follows:
263. Notwithstanding subsection 2, the amount of money that
27shall be transferred pursuant to this section to the housing
28trust fund in any one fiscal year shall not exceed three seven
29 million dollars. Any money that otherwise would be transferred
30pursuant to this section to the housing trust fund in excess
31of that amount shall be deposited in the general fund of the
32state.
33DIVISION XII
34HIGH QUALITY JOBS PROGRAM — DAY CARE CENTERS
35 Sec. 29. Section 15.327, Code 2021, is amended by adding the
-12-1following new subsection:
2 NEW SUBSECTION. 016. “Licensed center” means the same as
3defined in section 237A.1.
4 Sec. 30. Section 15.329, Code 2021, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 3A. In addition to the factors in
7subsection 3, in determining the eligibility of a business to
8participate in the program the authority may consider whether a
9proposed project will provide a licensed center for use by the
10business’s employees.
11DIVISION XIII
12workforce housing tax credits
13 Sec. 31. Section 15.119, subsection 2, paragraph g, Code
142021, is amended to read as follows:
15g. The workforce housing tax incentives program administered
16pursuant to sections 15.351 through 15.356. In allocating
17tax credits pursuant to this subsection, the authority shall
18not allocate more than twenty-five thirty million dollars for
19purposes of this paragraph. Of the moneys allocated under this
20paragraph, ten fifteen million dollars shall be reserved for
21allocation to qualified housing projects in small cities, as
22defined in section 15.352, that are registered on or after July
231, 2017.
24DIVISION XIV
25Disaster Recovery Housing Assistance Program and Fund
26 Sec. 32. NEW SECTION. 16.57A Transfer of unobligated or
27unencumbered funds — report.
281. Notwithstanding any other provision of law to the
29contrary, the authority may transfer any unobligated and
30unencumbered moneys in any revolving loan program fund created
31pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit
32in the disaster recovery housing assistance fund created in
33section 16.57B.
342. Notwithstanding section 8.39, and any other law to
35the contrary, with the prior written consent and approval of
-13-1the governor, the executive director of the authority may
2transfer any unobligated and unencumbered moneys in any fund
3created pursuant to section 16.5, subsection 1, paragraph
4“s”, for deposit in the disaster recovery housing assistance
5fund created in section 16.57B. The prior written consent and
6approval of the director of the department of management shall
7not be required to transfer the unobligated and unencumbered
8moneys.
93. Notwithstanding section 8.39, and any other law to the
10contrary, with the prior written approval of the governor, the
11director of the economic development authority may transfer
12any unobligated and unencumbered moneys in any fund created
13pursuant to section 15.106A, subsection 1, paragraph “o”,
14for deposit in the disaster recovery housing assistance fund
15created in section 16.57B.
164. Any transfer made under this section shall be reported in
17the same manner as provided in section 8.39, subsection 5.
18 Sec. 33. NEW SECTION. 16.57B Disaster recovery housing
19assistance program — fund.
201. Definitions. As used in this section, unless the context
21otherwise requires:
22a. “Disaster-affected home” means any of the following:
23(1) A primary residence that is destroyed or damaged due
24to a natural disaster that occurs on or after the effective
25date of this division of this Act, and the primary residence is
26located in a county that is the subject of a state of disaster
27emergency proclamation by the governor that authorizes disaster
28recovery housing assistance.
29(2) A primary residence that is destroyed or damaged due to
30a natural disaster that occurred on or after March 12, 2019,
31but before the effective date of this division of this Act, and
32is located in a county that has been declared a major disaster
33by the president of the United States on or after March 12,
342019, but before the effective date of this division of this
35Act, and is located in a county where individuals are eligible
-14-1for federal individual assistance.
2b. “Fund” means the disaster recovery housing assistance
3fund.
4c. “Local program administrator” means any of the following:
5(1) The cities of Ames, Cedar Falls, Cedar Rapids, Council
6Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo,
7and West Des Moines.
8(2) A council of governments whose territory includes at
9least one county that is the subject of a state of disaster
10emergency proclamation by the governor that authorizes disaster
11recovery housing assistance or the eviction prevention program
12under section 16.57C on or after the effective date of this
13division of this Act.
14(3) A community action agency as defined in section 216A.91
15and whose territory includes at least one county that is the
16subject of a state of disaster emergency proclamation by the
17governor that authorizes disaster recovery housing assistance
18or the eviction prevention program under section 16.57C on or
19after the effective date of this division of this Act.
20(4) A qualified local organization or governmental entity
21as determined by rules adopted by the authority.
22d. “Program” means the disaster recovery housing assistance
23program.
24e. “Replacement housing” means housing purchased
25by a homeowner or leased by a renter needed to replace
26a disaster-affected home that is destroyed or damaged
27beyond reasonable repair as determined by a local program
28administrator.
29f. “State of disaster emergency” means the same as described
30in section 29C.6, subsection 1.
312. Fund.
32a. (1) A disaster recovery housing assistance fund is
33created within the authority. The moneys in the fund shall be
34used by the authority for the development and operation of a
35forgivable loan and grant program for homeowners and renters
-15-1with disaster-affected homes, and for the eviction prevention
2program pursuant to section 16.57C.
3(2) Notwithstanding section 12C.7, subsection 2, interest
4or earnings on moneys deposited in the fund shall be credited
5to the fund. Notwithstanding section 8.33, moneys credited to
6the fund shall not revert at the close of a fiscal year.
7b. Moneys transferred by the authority for deposit in the
8fund, moneys appropriated to the fund, and any other moneys
9available to and obtained or accepted by the authority for
10placement in the fund shall be deposited in the fund.
11c. The authority shall not use more than five percent of
12the moneys in the fund on July 1 of a fiscal year for purposes
13of administrative costs and other program support during the
14fiscal year.
153. Program.
16a. The authority shall establish and administer a disaster
17recovery housing assistance program and shall use moneys in
18the fund to award forgivable loans to eligible homeowners and
19grants to eligible renters of disaster-affected homes. Moneys
20in the fund may be expended following a state of disaster
21emergency proclamation by the governor pursuant to section
2229C.6 that authorizes disaster recovery housing assistance.
23b. The authority may enter into an agreement with one or
24more local program administrators to administer the program.
254. Registration required. To be considered for a forgivable
26loan or grant under the program, a homeowner or renter must
27register for the disaster case management program established
28pursuant to section 29C.20B. The disaster case manager may
29refer the homeowner or renter to the appropriate local program
30administrator.
315. Homeowners.
32a. To be eligible for a forgivable loan under the program,
33all of the following requirements shall apply:
34(1) The homeowner’s disaster-affected home must have
35sustained damage greater than the damage that is covered by the
-16-1homeowner’s property and casualty insurance policy insuring the
2home plus any other state or federal disaster-related financial
3assistance that the homeowner is eligible to receive.
4(2) A local program administrator must either deem the
5disaster-affected home suitable for rehabilitation or damaged
6beyond reasonable repair.
7(3) The disaster-affected home is not eligible for buyout by
8the county or city where the disaster-affected home is located,
9or the disaster-affected home is eligible for a buyout by the
10county or city where the disaster-affected home is located, but
11the homeowner is requesting a forgivable loan for the repair
12or rehabilitation of the homeowner’s disaster-affected home in
13lieu of a buyout.
14(4) Assistance under the program must not duplicate
15benefits provided by any local, state, or federal disaster
16recovery assistance program.
17b. If a homeowner is referred to the authority or to a
18local program administrator by the disaster case manager of the
19homeowner, the authority may award a forgivable loan to the
20eligible homeowner for any of the following purposes:
21(1) Repair or rehabilitation of the disaster-affected home.
22(2) (a) Down payment assistance on the purchase of
23replacement housing, and the cost of reasonable repairs to be
24performed on the replacement housing to render the replacement
25housing decent, safe, sanitary, and in good repair.
26(b) Replacement housing shall not be located in a
27one-hundred-year floodplain.
28(c) For purposes of this subparagraph, “decent, safe,
29sanitary, and in good repair” means the same as described in 24
30C.F.R.§5.703.
31c. The authority shall determine the interest rate for the
32forgivable loan.
33d. If a homeowner who has been awarded a forgivable loan
34sells a disaster-affected home or replacement housing for which
35the homeowner received the forgivable loan prior to the end
-17-1of the loan term, the remaining principal on the forgivable
2loan shall be due and payable pursuant to rules adopted by the
3authority.
46. Renters.
5a. To be eligible for a grant under the program, all of the
6following requirements shall apply:
7(1) A local program administrator either deems
8the disaster-affected home of the renter suitable for
9rehabilitation but unsuitable for current short-term
10habitation, or the disaster-affected home is damaged beyond
11reasonable repair.
12(2) Assistance under the program must not duplicate
13benefits provided by any local, state, or federal disaster
14recovery assistance program.
15b. If a renter is referred to the authority or to a local
16program administrator by the disaster case manager of the
17renter, the authority may award a grant to the eligible renter
18to provide short-term financial assistance for the payment of
19rent for replacement housing.
207. Report. On or before January 31 of each year, the
21authority shall submit a report to the general assembly
22that identifies all of the following for the calendar year
23immediately preceding the year of the report:
24a. The date of each state of disaster emergency proclamation
25by the governor that authorized disaster recovery housing
26assistance under this section.
27b. The total number of forgivable loans and grants awarded.
28c. The total number of forgivable loans, and the amount of
29each loan awarded for repair or rehabilitation.
30d. The total number of forgivable loans, and the amount of
31each loan, awarded for down payment assistance on the purchase
32of replacement housing and the cost of reasonable repairs to be
33performed on the replacement housing to render the replacement
34housing decent, safe, sanitary, and in good repair.
35e. The total number of grants, and the amount of each grant,
-18-1awarded for rental assistance.
2f. The total number of forgivable loans and grants awarded
3in each county in which at least one homeowner or renter has
4been awarded a forgivable loan or grant.
5g. Each local program administrator involved in the
6administration of the program.
7h. The total amount of forgivable loan principal repaid.
8 Sec. 34. NEW SECTION. 16.57C Eviction prevention program.
91. a. “Eligible renter” means a renter whose income meets
10the qualifications of the program, who is at risk of eviction,
11and who resides in a county that is the subject of a state of
12disaster emergency proclamation by the governor that authorizes
13the eviction prevention program.
14b. “Eviction prevention partner” means a qualified local
15organization or governmental entity as determined by rule by
16the authority.
172. The authority shall establish and administer an eviction
18prevention program. Under the eviction prevention program,
19the authority shall award grants to eligible renters and to
20eviction prevention partners for purposes of this section.
21Grants may be awarded upon a state of disaster emergency
22proclamation by the governor that authorizes the eviction
23prevention program. Eviction prevention assistance shall be
24paid out of the fund established in section 16.57B.
253. a. Grants awarded to eligible renters pursuant to this
26section shall be used for short-term financial rent assistance
27to keep eligible renters in the current residences of such
28renters.
29b. Grants awarded to eviction prevention partners pursuant
30to this section shall be used to pay for rent or services
31provided to eligible renters for the purpose of preventing the
32eviction of eligible renters.
334. The authority may enter into an agreement with one or
34more local program administrators to administer the program.
35 Sec. 35. NEW SECTION. 16.57D Rules.
-19- 1The authority shall adopt rules pursuant to chapter 17A to
2implement and administer this part, including rules to do all
3of the following:
41. Establish the maximum forgivable loan and grant amounts
5awarded under the program.
62. Establish the terms of any forgivable loan provided under
7the program.
83. Income qualifications of eligible renters in the
9eviction prevention program.
10 Sec. 36. CODE EDITOR DIRECTIVE. The Code editor shall
11designate sections 16.57A through 16.57D, as enacted by
12this division of this Act, as a new part within chapter 16,
13subchapter VIII, and may redesignate the new and preexisting
14parts, replace references to sections 16.57A through 16.57D
15with references to the new part, and correct internal
16references as necessary, including references in subchapter or
17part headnotes.
18 Sec. 37. EFFECTIVE DATE. This division of this Act, being
19deemed of immediate importance, takes effect upon enactment.
20DIVISION XV
21BROWNFIELDS AND GRAYFIELDS
22 Sec. 38. Section 15.119, subsection 3, Code 2021, is amended
23to read as follows:
243. In allocating the amount of tax credits authorized
25pursuant to subsection 1 among the programs specified in
26subsection 2, the authority shall not allocate more than ten
27 fifteen million dollars for purposes of subsection 2, paragraph
28“f”.
29 Sec. 39. Section 15.291, subsection 2, Code 2021, is amended
30to read as follows:
312. “Brownfield site” means an abandoned, idled, or
32underutilized industrial or commercial facility where
33expansion or redevelopment is complicated by real or perceived
34environmental contamination. A brownfield site includes
35property contiguous with the property on which the individual
-20-1or commercial facility is located. A brownfield site does
2not include property which has been placed, or is proposed
3for placement, on the national priorities list established
4pursuant to the federal Comprehensive Environmental Response,
5Compensation, and Liability Act, 42 U.S.C. §9601 et seq.
6 Sec. 40. Section 15.293A, subsection 8, Code 2021, is
7amended to read as follows:
88. This section is repealed on June 30, 2021 2031.
9 Sec. 41. Section 15.293B, Code 2021, is amended by adding
10the following new subsection:
11 NEW SUBSECTION. 5A. a. Tax credits revoked under
12subsection 3 including tax credits revoked up to five years
13prior to the effective date of this division of this Act, and
14tax credits not awarded under subsection 4 or 5, may be awarded
15in the next annual application period established in subsection
161, paragraph “c”.
17b. Tax credits awarded pursuant to paragraph “a” shall not
18be counted against the limit under section 15.119, subsection
193.
20 Sec. 42. Section 15.293B, subsection 7, Code 2021, is
21amended to read as follows:
227. This section is repealed on June 30, 2021 2031.
23 Sec. 43. Section 15.352, subsection 1, Code 2021, is amended
24to read as follows:
251. “Brownfield site” means an abandoned, idled, or
26underutilized property where expansion or redevelopment is
27complicated by real or perceived environmental contamination.
28A brownfield site includes property contiguous with the site
29on which the property is located. A brownfield site does
30not include property which has been placed, or is proposed
31for placement, on the national priorities list established
32pursuant to the federal Comprehensive Environmental Response,
33Compensation, and Liability Act, 42 U.S.C. §9601 et seq.
34 Sec. 44. EFFECTIVE DATE. The following, being deemed of
35immediate importance, take effect upon enactment:
-21- 11. The section of this division of this Act amending section
215.293A, subsection 8.
32. The section of this division of this Act amending section
415.293B, subsection 7.
5DIVISION XVI
6HIGH QUALITY JOBS and renewable chemical production tax credits
7 Sec. 45. Section 15.119, subsection 2, paragraph a,
8subparagraphs (2) and (3), Code 2021, are amended to read as
9follows:
10(2) In allocating tax credits pursuant to this subsection
11for each fiscal year of the fiscal period beginning July 1,
122016, and ending June 30, 2021 the fiscal year beginning July
131, 2021, and for each fiscal year thereafter, the authority
14shall not allocate more than one hundred five seventy million
15dollars for purposes of this paragraph. This subparagraph (2)
16is repealed July 1, 2021.
17(3) (a) In allocating tax credits pursuant to this
18subsection for the fiscal year beginning July 1, 2021, and
19ending June 30, 2022, the authority shall not allocate more
20than one hundred five million dollars for purposes of this
21paragraph if the aggregate amount of renewable chemical
22production tax credits under section 15.319 that were awarded
23on or after July 1, 2018, but before July 1, 2021, equals or
24exceeds twenty-seven million dollars.
25(b) As soon as practicable after June 30, 2021, the
26authority shall notify the general assembly of the aggregate
27amount of renewable chemical production tax credits awarded
28under section 15.319 on or after July 1, 2018, but before
29July 1, 2021, and whether or not the tax credit allocation
30limitation described in subparagraph division (a) is
31applicable.
32(c) This subparagraph (3) is repealed July 1, 2022.
33DIVISION XVII
34BONUS DEPRECIATION
35 Sec. 46. Section 422.7, subsection 39A, Code 2021, is
-22-1amended by striking the subsection.
2 Sec. 47. Section 422.35, subsection 19A, Code 2021, is
3amended by striking the subsection.
4 Sec. 48. RETROACTIVE APPLICABILITY. This division of this
5Act applies retroactively to January 1, 2021, for tax years
6beginning on or after that date, and for qualified property
7placed in service on or after that date.
8DIVISION XVIII
9ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM
10 Sec. 49. Section 476.10A, subsection 2, Code 2021, is
11amended to read as follows:
122. Notwithstanding section 8.33, any unexpended moneys
13remitted to the treasurer of state under this section shall be
14retained for the purposes designated. Notwithstanding section
1512C.7, subsection 2, interest or earnings on investments or
16time deposits of the moneys remitted under this section shall
17be retained and used for the purposes designated, pursuant to
18section 476.46.
19 Sec. 50. Section 476.46, subsection 2, paragraph e,
20subparagraph (3), Code 2021, is amended to read as follows:
21(3) Interest on the fund shall be deposited in the fund.
22A portion of the interest on the fund, not to exceed fifty
23percent of the total interest accrued, shall be used for
24promotion and administration of the fund.
25 Sec. 51. Section 476.46, Code 2021, is amended by adding the
26following new subsections:
27 NEW SUBSECTION. 3. The Iowa energy center shall not
28initiate any new loans under this section after June 30, 2021.
29 NEW SUBSECTION. 4. Loan payments received under this
30section on or after July 1, 2021, and any other moneys in the
31fund on or after July 1, 2021, shall be deposited in the energy
32infrastructure revolving loan fund created in section 476.46A.
33 Sec. 52. NEW SECTION. 476.46A Energy infrastructure
34revolving loan program.
351. a. An energy infrastructure revolving loan fund is
-23-1created in the office of the treasurer of state and shall be
2administered by the Iowa energy center established in section
315.120.
4b. The fund may be administered as a revolving fund and may
5consist of any moneys appropriated by the general assembly for
6purposes of this section and any other moneys that are lawfully
7directed to the fund.
8c. Moneys in the fund shall be used to provide financial
9assistance for the development and construction of energy
10infrastructure, including projects that support electric or gas
11generation transmission, storage, or distribution; electric
12grid modernization; energy-sector workforce development;
13emergency preparedness for rural and underserved areas; the
14expansion of biomass, biogas, and renewable natural gas;
15innovative technologies; and the development of infrastructure
16for alternative fuel vehicles.
17d. Notwithstanding section 8.33, moneys appropriated in this
18section that remain unencumbered or unobligated at the close of
19the fiscal year shall not revert but shall remain available for
20expenditure for the purposes designated until the close of the
21succeeding fiscal year.
22e. Notwithstanding section 12C.7, subsection 2, interest
23or earnings on moneys in the fund shall be credited to the
24fund. A percentage of the total interest credited to the fund,
25not to exceed fifty percent, shall be used for promotion of
26the energy infrastructure revolving loan program and for the
27administration of the fund.
282. a. The Iowa energy center shall establish and administer
29an energy infrastructure revolving loan program to encourage
30the development of energy infrastructure within the state.
31b. An individual, business, rural electric cooperative, or
32municipal utility located and operating in this state shall be
33eligible for financial assistance under the program. With the
34approval of the Iowa energy center governing board established
35under section 15.120, subsection 2, the economic development
-24-1authority shall determine the amount and the terms of all
2financial assistance awarded to an individual, business, rural
3electric cooperative, or municipal utility under the program.
4All agreements and administrative authority sha11 be vested in
5the Iowa energy center governing board.
6c. The economic development authority may use not more than
7five percent of the moneys in the fund at the beginning of each
8fiscal year for purposes of administrative costs, marketing,
9technical assistance, and other program support.
103. For the purposes of this section:
11a. “Energy infrastructure” means land, buildings, physical
12plant and equipment, and services directly related to the
13development of projects used for, or useful for, electricity or
14gas generation, transmission, storage, or distribution.
15b. “Financial assistance” means the same as defined in
16section 15.102.
17 Sec. 53. ALTERNATE ENERGY REVOLVING LOAN FUND — MONEYS
18TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated
19moneys remaining after June 30, 2021, in the alternate energy
20revolving loan fund created pursuant to section 476.46, are
21transferred and appropriated to the energy infrastructure
22revolving loan fund created pursuant to section 476.46A, to be
23used for purposes of the energy infrastructure revolving loan
24program.
25DIVISION XIX
26INVESTMENTS IN QUALIFYING BUSINESSES AND EQUITY INVESTMENTS IN
27INNOVATION FUNDS
28 Sec. 54. Section 15.119, subsection 2, paragraph d, Code
292021, is amended to read as follows:
30d. (1) The tax credits for investments in qualifying
31businesses issued pursuant to section 15E.43 and for equity
32investments in an innovation fund pursuant to section 15E.52.
33In allocating tax credits pursuant to this subsection, the
34authority shall allocate two an aggregate of ten million
35dollars for purposes of this paragraph subparagraph, unless the
-25-1authority determines that the tax credits awarded will be less
2than that amount.
3(2) On or before June 30 of each fiscal year the authority
4shall determine the amount of tax credits to be allocated
5for the next fiscal year beginning July 1 to investments
6in qualifying businesses and to equity investments in an
7innovation fund under subparagraph (1). Any tax credits
8allocated for purposes of subparagraph (1) and not awarded
9in that fiscal year shall be reallocated to a purpose under
10subparagraph (1) for the next fiscal year and shall not be
11counted against the aggregate maximum of ten million dollars.
12 Sec. 55. Section 15.119, subsection 2, paragraph e, Code
132021, is amended by striking the paragraph.
14 Sec. 56. Section 15E.43, subsection 2, paragraphs b and c,
15Code 2021, are amended to read as follows:
16b. The maximum amount of a tax credit that may be issued
17per calendar fiscal year to a natural person and the person’s
18spouse or dependent shall not exceed one hundred thousand
19dollars combined. For purposes of this paragraph, a tax
20credit issued to a partnership, limited liability company, S
21corporation, estate, or trust electing to have income taxed
22directly to the individual shall be deemed to be issued to
23the individual owners based upon the pro rata share of the
24individual’s earnings from the entity. For purposes of this
25paragraph, “dependent” has the same meaning as provided by the
26Internal Revenue Code.
27c. The maximum amount of tax credits that may be issued
28per calendar fiscal year for equity investments in any one
29qualifying business shall not exceed five hundred thousand
30dollars.
31 Sec. 57. APPLICABILITY. The following applies to tax
32credits allocated on or after the fiscal year beginning July 1,
332021, and for each fiscal year thereafter:
34The section of this division of this Act amending section
3515.119, subsection 2, paragraph “d”.
-26-1 Sec. 58. EFFECTIVE DATE. This division of this Act, being
2deemed of immediate importance, takes effect upon enactment.
3DIVISION XX
4rural economic development
5 Sec. 59. Section 15.327, Code 2021, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 27. “Rural community” means any city
8located in this state with a population of thirty thousand
9or less in a county with a population of fifty thousand or
10less. A rural community located in more than one county shall
11be considered to be located in the county having the greatest
12taxable base within the city.
13 Sec. 60. Section 15.335A, subsection 1, unnumbered
14paragraph 1, Code 2021, is amended to read as follows:
15Tax incentives are available to eligible businesses as
16provided in this section subsection and subsection 1A. The
17incentives are based upon the number of jobs created or
18retained that pay at least one hundred twenty percent of the
19qualifying wage threshold and the amount of the qualifying
20investment made according to the following schedule:
21 Sec. 61. Section 15.335A, Code 2021, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 1A. Tax incentives are available to
24eligible businesses located in rural communities as provided
25in this subsection. The incentives are based upon the number
26of jobs created or retained that pay at least one hundred ten
27percent of the qualifying wage threshold and the amount of the
28qualifying investment made according to the following schedule:
29a. The number of jobs is zero and economic activity is
30furthered by the qualifying investment and the amount of the
31qualifying investment is one of the following:
32(1) Less than fifty thousand dollars, then the tax incentive
33is the investment tax credit of up to two percent.
34(2) At least fifty thousand dollars but less than two
35hundred fifty thousand dollars, then the tax incentives are the
-27-1investment tax credit of up to two percent and the sales tax
2refund.
3(3) At least two hundred fifty thousand dollars, then the
4tax incentives are the investment tax credit of up to two
5percent, the sales tax refund, and the additional research and
6development tax credit.
7b. The number of jobs is one but not more than five and the
8amount of the qualifying investment is one of the following:
9(1) Less than fifty thousand dollars, then the tax incentive
10is the investment tax credit of up to three percent.
11(2) At least fifty thousand dollars but less than two
12hundred fifty thousand dollars, then the tax incentives are the
13investment tax credit of up to three percent and the sales tax
14refund.
15(3) At least two hundred fifty thousand dollars, then the
16tax incentives are the investment tax credit of up to three
17percent, the sales tax refund, and the additional research and
18development tax credit.
19c. The number of jobs is six but not more than ten and the
20amount of the qualifying investment is one of the following:
21(1) Less than fifty thousand dollars, then the tax incentive
22is the investment tax credit of up to four percent.
23(2) At least fifty thousand dollars but less than two
24hundred fifty thousand dollars, then the tax incentives are the
25investment tax credit of up to four percent and the sales tax
26refund.
27(3) At least two hundred fifty thousand dollars, then the
28tax incentives are the investment tax credit of up to four
29percent, the sales tax refund, and the additional research and
30development tax credit.
31d. The number of jobs is eleven but not more than fifteen
32and the amount of the qualifying investment is one of the
33following:
34(1) Less than fifty thousand dollars, then the tax incentive
35is the investment tax credit of up to five percent.
-28- 1(2) At least fifty thousand dollars but less than two
2hundred fifty thousand dollars, then the tax incentives are the
3investment tax credit of up to five percent and the sales tax
4refund.
5(3) At least two hundred fifty thousand dollars, then the
6tax incentives are the investment tax credit of up to five
7percent, the sales tax refund, and the additional research and
8development tax credit.
9e. The number of jobs is sixteen or more and the amount of
10the qualifying investment is one of the following:
11(1) Less than fifty thousand dollars, then the tax incentive
12is the investment tax credit of up to six percent.
13(2) At least fifty thousand dollars but less than two
14hundred fifty thousand dollars, then the tax incentives are the
15investment tax credit of up to six percent and the sales tax
16refund.
17(3) At least two hundred fifty thousand dollars, then the
18tax incentives are the investment tax credit of up to six
19percent, the sales tax refund, and the additional research and
20development tax credit.
21f. The number of jobs is thirty-one but not more than forty
22and the amount of the qualifying investment is at least five
23million dollars, then the tax incentives are the local property
24tax exemption, the investment tax credit of up to seven
25percent, the sales tax refund, and the additional research and
26development tax credit.
27g. The number of jobs is forty-one but not more than sixty
28and the amount of the qualifying investment is at least five
29million dollars, then the tax incentives are the local property
30tax exemption, the investment tax credit of up to eight
31percent, the sales tax refund, and the additional research and
32development tax credit.
33h. The number of jobs is sixty-one but not more than
34eighty and the amount of the qualifying investment is at least
35five million dollars, then the tax incentives are the local
-29-1property tax exemption, the investment tax credit of up to nine
2percent, the sales tax refund, and the additional research and
3development tax credit.
4i. The number of jobs is eighty-one but not more than one
5hundred and the amount of the qualifying investment is at least
6five million dollars, then the tax incentives are the local
7property tax exemption, the investment tax credit of up to ten
8percent, the sales tax refund, and the additional research and
9development tax credit.
10j. The number of jobs is at least one hundred one and the
11amount of the qualifying investment is at least ten million
12dollars, then the tax incentives are the local property
13tax exemption, the investment tax credit of up to eleven
14percent, the sales tax refund, and the additional research and
15development tax credit.
16 Sec. 62. Section 15.335B, subsection 3, paragraph c, Code
172021, is amended to read as follows:
18c. (1) Consider the amount and type of the local community
19match. The as follows:
20(a) In a community with a population of less than five
21thousand, a community match shall not be required.
22(b) In a community with a population equal to or greater
23than five thousand, but less than fifteen thousand, a community
24match of at least five percent of the projected funds to be
25expended by the eligible business shall be required.
26(c) In a community with a population equal to or greater
27than fifteen thousand, but less than thirty thousand, a
28community match of at least ten percent of the projected funds
29to be expended by the eligible business shall be required.
30(d) In a community with a population equal to or greater
31than thirty thousand, a community match of at least twenty
32percent of the projected funds to be expended by the eligible
33business shall be required.
34(2) Notwithstanding subparagraph (1), theauthority may
35provide assistance to an early-stage business in a high-growth
-30-1industry regardless of the amount of local match involved.
2 Sec. 63. NEW SECTION. 15.337A Rules.
3The authority shall adopt rules pursuant to chapter 17A to
4administer this part.
5 Sec. 64. EFFECTIVE DATE. This division of this Act, being
6deemed of immediate importance, takes effect upon enactment.
7DIVISION XXI
8TELEHEALTH — MENTAL HEALTH PARITY
9 Sec. 65. Section 514C.34, subsection 1, Code 2021, is
10amended by adding the following new paragraphs:
11 NEW PARAGRAPH. 0a. “Covered person” means the same as
12defined in section 514J.102.
13 NEW PARAGRAPH. 00a. “Facility” means the same as defined in
14section 514J.102.
15 NEW PARAGRAPH. 0c. “Health carrier” means the same as
16defined in section 514J.102.
17 Sec. 66. Section 514C.34, subsection 1, paragraph c, Code
182021, is amended to read as follows:
19c. “Telehealth” means the delivery of health care services
20through the use of real-time interactive audio and video, or
21other real-time interactive electronic media, regardless of
22where the health care professional and the covered person are
23each located. “Telehealth” does not include the delivery of
24health care services delivered solely through an audio-only
25telephone, electronic mail message, or facsimile transmission.
26 Sec. 67. Section 514C.34, Code 2021, is amended by adding
27the following new subsection:
28 NEW SUBSECTION. 3A. a. A health carrier shall reimburse
29a health care professional and a facility for health care
30services provided by telehealth to a covered person for a
31mental health condition, illness, injury, or disease on the
32same basis and at the same rate as the health carrier would
33apply to the same health care services for a mental health
34condition, illness, injury, or disease provided in person to a
35covered person by the health care professional or the facility.
-31- 1b. As a condition of reimbursement pursuant to paragraph
2“a”, a health carrier shall not require that an additional
3health care professional be located in the same room as a
4covered person while health care services for a mental health
5condition, illness, injury, or disease are provided via
6telehealth by another health care professional to the covered
7person.
8 Sec. 68. EFFECTIVE DATE. This division of this Act, being
9deemed of immediate importance, takes effect upon enactment.
10 Sec. 69. RETROACTIVE APPLICABILITY. This division of
11this Act applies to health care services for a mental health
12condition, illness, injury, or disease provided by a health
13care professional or a facility to a covered person by
14telehealth on or after January 1, 2021.
15DIVISION XXII
16septic tanks
17 Sec. 70. Section 331.301, Code 2021, is amended by adding
18the following new subsection:
19 NEW SUBSECTION. 18. A county shall not require the payment
20of a penalty, fine, or fee due to a resident’s noncompliance
21with rules adopted by the county sanitarian regarding periodic
22septic tank pumping as part of routine maintenance.
23DIVISION XXIII
24emergency volunteer — tax credit
25 Sec. 71. Section 422.12, subsection 2, paragraph c,
26subparagraph (1), Code 2021, is amended to read as follows:
27(1) A volunteer fire fighter and volunteer emergency
28medical services personnel member credit equal to one two
29 hundred fifty dollars to compensate the taxpayer for the
30voluntary services if the volunteer served for the entire
31tax year. A taxpayer who is a paid employee of an emergency
32medical services program or a fire department and who is also
33a volunteer emergency medical services personnel member or
34volunteer fire fighter in a city, county, or area governed
35by an agreement pursuant to chapter 28E where the emergency
-32-1medical services program or fire department performs services,
2shall qualify for the credit provided under this paragraph “c”.
3 Sec. 72. Section 422.12, subsection 2, paragraph d,
4subparagraph (1), Code 2021, is amended to read as follows:
5(1) A reserve peace officer credit equal to one two hundred
6fifty dollars to compensate the taxpayer for services as a
7reserve peace officer if the reserve peace officer served for
8the entire tax year.
9 Sec. 73. RETROACTIVE APPLICABILITY. This division of this
10Act applies retroactively to January 1, 2021, for tax years
11beginning on or after that date.
12DIVISION XXIV
13food banks
14 Sec. 74. Section 423.3, Code 2021, is amended by adding the
15following new subsection:
16 NEW SUBSECTION. 107. The sales price from the sale or
17rental of tangible personal property or specified digital
18products, or services furnished, to a nonprofit food bank,
19which tangible personal property, specified digital products,
20or services are to be used by the nonprofit food bank for a
21charitable purpose. For purposes of this subsection, “nonprofit
22food bank” means an organization organized under chapter 504
23and qualifying under section 501(c)(3) of the Internal Revenue
24Code as an organization exempt from federal income tax under
25section 501(a) of the Internal Revenue Code that maintains
26an established operation involving the provision of food or
27edible commodities or the products thereof on a regular basis
28to persons in need with distribution through food pantries,
29soup kitchens, hunger relief centers, or other food or feeding
30centers that, as an integral part of their normal activities,
31provide meals or food on a regular basis to persons in need.
32DIVISION XXV
33SPECIFIED DIGITAL PRODUCTS SALES AND USE TAX EXEMPTION —
34MUNICIPAL UTILITIES AND RURAL ELECTRIC COOPERATIVES
35 Sec. 75. Section 423.3, subsection 31, paragraph a, Code
-33-12021, is amended to read as follows:
2a. The sales price of tangible personal property or
3specified digital products sold to, or of services furnished,
4and used by or in connection with the operation of any
5municipally owned public utility engaged in selling gas,
6electricity, heat, pay television service, or communication
7service to the general public.
8 Sec. 76. Section 423.3, Code 2021, is amended by adding the
9following new subsection:
10 NEW SUBSECTION. 47B. The sales price from the sale of
11specified digital products sold to and used in connection with
12the operation of a rural electric cooperative.
13DIVISION XXVI
14CONSUMER LOANS
15 Sec. 77. Section 537.2401, subsection 1, Code 2021, is
16amended to read as follows:
171. Except as provided with respect to a finance charge for
18loans pursuant to open-end credit under section 537.2402 and
19loans secured by a certificate of title of a motor vehicle
20under section 537.2403, a lender may contract for and receive
21a finance charge not exceeding the maximum charge permitted
22by the laws of this state or of the United States for similar
23lenders, and, in addition, with respect to a consumer loan,
24a supervised financial organization or a mortgage lender may
25contract for and receive a finance charge, calculated according
26to the actuarial method, not exceeding twenty-one percent
27 the rate authorized under the federal Military Lending Act,
2810 U.S.C. §987(b), per year on the unpaid balance of the
29amount financed. Except as provided in section 537.2403, this
30subsection does not prohibit a lender from contracting for and
31receiving a finance charge exceeding twenty-one percent the
32rate authorized under the federal Military Lending Act, 10
33U.S.C. §987(b), per year on the unpaid balance of the amount
34financed on consumer loans if authorized by other provisions
35of the law.
-34-1DIVISION XXVII
2INDIVIDUAL INCOME TAX — CHECKOFFS
3 Sec. 78. Section 422.12E, subsection 1, Code 2021, is
4amended to read as follows:
51. There shall be allowed no more than four income tax
6return checkoffs on each income tax return. For tax years
7beginning on or after January 1, 2017 2024, when the same four
8income tax return checkoffs have been provided on the income
9tax return for two consecutive tax years, the two checkoffs for
10which the least amount has been contributed, in the aggregate
11for the first tax year and through March 15 after the end of the
12second tax year, are repealed on December 31 after the end of
13the second tax year and shall be removed from the return form.
14 Sec. 79. CHECKOFFS — REPEAL — APPLICABILITY. The
15checkoffs receiving the least amount of contributions for tax
16years 2019 and 2020 shall not be repealed on December 31,
172021. The individual income tax return shall contain the
18same four income tax return checkoffs that were on the 2020
19individual income tax return form until such time the two-year
20contribution calculation for inclusion on the individual income
21tax form is made pursuant to section 422.12E, subsection 1, as
22amended by this division of this Act.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to state taxation matters and economic
27development activities, including future tax contingencies,
28state income tax deductions, tax credits, the state inheritance
29tax, the sales and use tax, disaster recovery housing, energy
30infrastructure, telehealth parity, local regulations, and other
31properly related matters. The bill is divided into divisions.
32DIVISION I — FUTURE TAX CHANGES. The bill amends 2018 Iowa
33Acts, chapter 1161, section 133 (trigger), by striking the two
34conditions necessary for the trigger to occur, and specifies
35the provisions in 2018 Iowa Acts, chapter 1161, sections
-35-199-132, take effect January 1, 2023.
2Currently, the two conditions are necessary for the trigger
3to occur include net general fund revenues for the fiscal year
4ending June 30, 2022, equaling or exceeding $8.3146 billion,
5and also equaling or exceeding 104 percent of the net general
6fund revenues for the fiscal year ending June 30, 2021. If
7these two conditions are not satisfied, current law institutes
8the changes for tax years beginning on or after the January 1
9following the first fiscal year for which the two conditions
10do occur. By striking the “trigger”, the bill sets in motion
11numerous tax changes for tax years beginning on or after
12January 1, 2023, described below.
13INDIVIDUAL INCOME TAX. The tax changes include reducing the
14number of individual income tax brackets from nine to four, and
15modifying the taxable income amounts and tax rates as follows:
16Income over:But not over:Tax Rate:
171)$0$6,0004.40%
182)$6,000$30,0004.82%
193)$30,000$75,0005.70%
204)$75,0006.50%
21For a married couple filing a joint return, the taxable
22income amounts in each bracket above are doubled. Also, the
23taxable income amounts in each bracket above will be indexed to
24inflation and increased in future tax years, beginning in the
25tax year following the 2023 tax year.
26INDIVIDUAL INCOME TAX CALCULATION. Under current law, the
27starting point for computing the Iowa individual income tax is
28federal adjusted gross income before the net operating loss
29deduction, which is generally a taxpayer’s gross income minus
30several deductions. From that point, Iowa requires several
31adjustments and then provides taxpayers with a deduction
32for federal income taxes paid, and the option to deduct a
33standard deduction or itemized deductions. The bill changes
34the starting point for computing the individual income tax
35to federal taxable income, which includes all deductions and
-36-1adjustments taken at the federal level in computing tax,
2including a standard deduction or itemized deductions, and the
3qualified business income deduction allowed for certain income
4earned from a pass-through entity. Because the starting point
5changes to federal taxable income, and federal law does not
6provide for the filing status of married filing separately
7on a combined return, the bill repeals that filing status
8option for Iowa tax purposes. Because net operating loss is
9no longer calculated at the state level, the bill requires a
10taxpayer to add back any federal net operating loss deduction
11carried over from a taxable year beginning prior to the 2023
12tax year, but allows taxpayers to deduct any remaining Iowa net
13operating loss from a prior taxable year. The bill repeals the
14individual alternative minimum tax (AMT), allows an individual
15to claim any remaining AMT credit against the individual’s
16regular tax liability for the 2023 tax year, and then repeals
17the AMT credit in the tax year following the 2023 tax year.
18The bill repeals most Iowa-specific deductions, exemptions,
19and adjustments currently available when computing net income
20and taxable income under Iowa law, including the Iowa optional
21standard deduction and all itemized deductions, and the ability
22to deduct federal income taxes, except for a one-year phase
23out in the 2023 tax year for taxes paid, or refunds received,
24that relate to a prior year. The bill maintains the add-back
25for income from securities that are federally exempt but not
26state-exempt, and for bonus depreciation amounts. The bill
27maintains the general pension exclusion and the deduction
28for income from federal securities. The bill maintains the
29deduction for contributions to the Iowa 529 plan, the Iowa ABLE
30plan, a first-time homebuyer savings account, and an individual
31development account. The bill also maintains the deductions
32for military pension income, military active duty pay, social
33security retirement benefits, certain payments received for
34providing unskilled in-home health care, certain amounts
35received from the veterans trust fund, victim compensation
-37-1awards, biodiesel production refunds, certain wages paid
2to individuals with disabilities or individuals previously
3convicted of a felony, certain organ donations, and Segal
4AmeriCorps education award payments. The bill modifies the
5existing deduction for health insurance payments in Code
6section 422.7(29) to make the deduction only applicable to
7taxpayers who are at least 65 years old and who have net
8income below $100,000. The bill also modifies the existing
9capital gain deduction in Code section 422.7(21) to restrict
10the deduction to the sale of real property used in farming
11businesses by permitting the taxpayer to take the deduction
12if either of the following apply: the taxpayer materially
13participated in the farming business for at least 10 years and
14held the real property for at least 10 years; or the taxpayer
15sold the real property to a relative. The bill expands the
16definition of “relative” to include an entity in which a
17relative of the taxpayer has a legal or equitable interest in
18the entity as an owner, member, partner, or beneficiary. The
19bill provides a new deduction for any income of an employee
20resulting from the payment by an employer, whether paid to
21the employee or a lender, of principal or interest on the
22employee’s qualified education loan. The bill also modifies
23the calculation of net income for purposes of the alternate
24tax calculation in Code section 422.5(3) and (3B), and the tax
25return filing thresholds in Code section 422.13, to require
26that any amount of itemized deduction, standard deduction,
27personal exemption deduction, or qualified business income
28deduction that was allowed in computing federal taxable income
29shall be added back.
30CORPORATE INCOME TAX AND FRANCHISE TAX CALCULATION. Under
31current law, the starting point for calculating the corporate
32income tax and franchise tax is federal taxable income before
33the net operating loss deduction, because net operating loss is
34calculated at the state level. The bill repeals the separate
35calculation of net operating loss at the state level. As a
-38-1result, the bill requires taxpayers to add back any federal
2net operating loss deduction carried over from a taxable year
3beginning prior to the trigger year, but allows taxpayers to
4deduct any remaining Iowa net operating loss from a prior
5taxable year. The bill also repeals most Iowa-specific
6deductions, exemptions, and adjustments currently available
7when computing net income and taxable income under Iowa law.
8The bill maintains the add-back for income from securities
9that are federally exempt but not state exempt, and for bonus
10depreciation amounts. The bill maintains the deductions for
11income from federal securities, for foreign dividend and
12subpart F income, for certain wages paid to individuals with
13disabilities or individuals previously convicted of a felony,
14and for biodiesel production refunds.
15DIVISION II — CHILD DEPENDENT AND DEVELOPMENT TAX CREDITS.
16 Currently, an individual may claim 30 percent of the federal
17child and dependent care credit provided in section 21 of
18the Internal Revenue Code against the individual income tax
19if the individual’s net income is less than $45,000. Under
20the bill, an individual may claim 30 percent of the federal
21child and dependent care credit provided in section 21 of the
22Internal Revenue Code against the individual income tax if the
23individual’s net income is less than $90,000.
24The bill increases the income threshold determining the
25eligibility of a taxpayer for the early childhood development
26tax credit. The bill increases the eligibility threshold from
27a taxpayer whose net income is less than $45,000 per year to
28less than $90,000 per year. By increasing the eligibility
29threshold, taxpayers whose net income is less than $90,000 are
30now eligible to take the early childhood development tax credit
31equaling 25 percent of the first $1,000 which the taxpayer has
32paid to others for early childhood development expenses for
33each dependent ages three through five.
34RETROACTIVE APPLICABILITY. The division applies
35retroactively to tax years beginning on or after January 1,
-39-12021.
2The division takes effect upon enactment.
3DIVISION III — COVID-19 RELATED GRANTS — TAXATION. The
4bill excludes from the calculation of Iowa individual and
5corporate income tax any qualifying COVID-19 grant issued to an
6individual or business by the economic development authority,
7the Iowa finance authority, or the department of agriculture
8and land stewardship.
9Under the bill, a “qualifying COVID-19 grant” includes
10any grant identified by the department of revenue by rule
11that was issued under a grant program administered by the
12economic development authority, Iowa finance authority, or
13the department of agriculture and land stewardship to provide
14financial assistance to individuals and businesses economically
15impacted by the COVID-19 pandemic.
16Under current law, financial assistance grants provided to
17small businesses by the economic development authority under
18the Iowa small business COVID-19 relief grant program are
19excluded from the calculation of Iowa individual and corporate
20income tax.
21The COVID-19 grant income tax exclusion provided in the bill
22is repealed on January 1, 2024, and does not apply to tax years
23beginning on or after that date.
24The division takes effect upon enactment and applies
25retroactively to March 23, 2020, for tax years ending on or
26after that date.
27DIVISION IV — FEDERAL PAYCHECK PROTECTION PROGRAM. Under
28current law, for the tax year 2020 and later, Iowa law fully
29conforms with the federal treatment of forgiven paycheck
30protection program loans and excludes such amounts from net
31income and allows certain deductions for business expenses
32paid using those loans. For fiscal-year filers who received
33paycheck protection program loans during the 2019 tax year,
34current law excludes such amounts from net income, but does
35not allow certain deductions for business expenses paid using
-40-1those loans. The bill fully conforms with federal law for
2those fiscal-year filers who previously were excluded from such
3conformity and allows such filers to take business expense
4deductions using federal paycheck protection program loan
5proceeds that were forgiven.
6DIVISION V — SCHOOL TUITION ORGANIZATION TAX CREDIT. The
7bill changes the school tuition organization tax credit in two
8ways.
9First, the bill modifies the amount of a voluntary cash
10or noncash contribution that may be claimed as a tax credit
11during a tax year. Currently, 65 percent of the amount of the
12voluntary cash or noncash contribution may be claimed as a tax
13credit, subject to the total aggregate amount of credits that
14may be claimed in one calendar year. For tax years beginning
15on or after January 1, 2022, the bill increases the amount of
16the contribution that may be claimed as a tax credit from 65
17percent to 72 percent, for tax years beginning on or after
18January 1, 2023, but before January 1, 2024, the amount of the
19contribution that may be claimed as a tax credit increases from
2072 percent to 78 percent, for tax years beginning on or after
21January 1, 2024, but before January 1, 2025, the amount of the
22contribution that may be claimed as a tax credit increases
23from 78 percent to 85 percent, and for tax years beginning on
24or after January 1, 2025, the amount of the contribution that
25may be claimed as a tax credit increases from 85 percent to 87
26percent.
27Second, the bill increases the maximum amount of allowable
28school tuition organization tax credits that may be claimed in
29the aggregate as follows: beginning in calendar year 2022, the
30maximum amount of allowable credits increases from $15 million
31to $16.5 million; for calendar year 2023, the maximum amount of
32allowable credits increases from $16.5 million to $18 million;
33for calendar year 2024, the maximum amount of allowable credits
34increases from $18 million to $19.5 million; and for calendar
35years beginning on or after January 1, 2025, the maximum amount
-41-1of allowable credits is set at $20 million.
2This division applies retroactively to tax years beginning
3on or after January 1, 2021.
4DIVISION VI — TARGETED JOBS WITHHOLDING CREDIT. The
5bill extends by five years the deadline for entering into
6withholding agreements under the targeted jobs withholding
7credit pilot project from June 30, 2021, to June 30, 2026.
8DIVISION VII — ECONOMIC EMERGENCY FUND — EXCESS MONEYS.
9 The bill provides that after the surplus existing in the
10general fund of the state at the conclusion of a fiscal year
11is appropriated to the cash reserve fund, the elimination of
12Iowa’s GAAP deficit, and the Iowa economic emergency fund as
13provided under current law, an amount equal to not more than
14five percent of the adjusted revenue estimate for the fiscal
15year is transferred to the general fund of the state and any
16remaining moneys are transferred to the taxpayer relief fund.
17This division takes effect July 1, 2022.
18DIVISION VIII — TAXPAYER RELIEF FUND — TAX CREDIT. The
19bill provides that if the amount in the taxpayer relief fund
20equals or exceeds $120 million, the entire balance of the
21taxpayer relief fund is transferred to the Iowa taxpayer relief
22tax credit fund to be used by the department of revenue to
23provide Iowa taxpayer relief tax credits in equal amounts to
24eligible taxpayers who filed individual income tax returns.
25This division takes effect upon enactment and applies
26retroactively to January 1, 2021, for tax years beginning on
27or after that date.
28DIVISION IX — STATE INHERITANCE TAX. The bill
29proportionally reduces over a nine-year fiscal period the rates
30of tax applicable to the state inheritance tax, beginning for
31estates of decedents dying on or after July 1, 2021. The
32bill then repeals the state inheritance tax and the state
33qualified use inheritance tax effective July 1, 2030, for
34property of estates of decedents dying on or after July 1,
352030. Inheritance tax will not be imposed on any property in
-42-1the event of the death of an individual on or after July 1,
22030. The bill directs the Code editor to remove Code chapters
3450 (inheritance tax) and 450B (qualified use inheritance tax)
4from the Code effective July 1, 2040.
5DIVISION X — HIGH QUALITY JOBS — ELIGIBILITY REQUIREMENTS.
6 To be eligible to receive incentives or assistance under the
7high quality jobs program, a business cannot be in the process
8of reducing operations in one community while simultaneously
9apply for assistance under the program. Under current law,
10a reduction in operations within 12 months before or after
11a business submits an application to the high quality jobs
12program is presumed to be a reduction in operations while
13simultaneously applying for assistance under the program.
14Under the bill, the economic development authority (authority)
15cannot presume that a reduction in operations is a reduction
16while simultaneously applying for assistance under the program
17with regard to a business that submits an application on or
18before June 30, 2022, if the business demonstrates to the
19satisfaction of the authority that the reduction in operations
20occurred after March 1, 2020, and that it was a result of the
21COVID-19 pandemic. The authority must consider whether the
22benefit of the project proposed by the business outweighs any
23negative impact related to the reduction in operations. The
24business remains subject to all other eligibility requirements.
25This division of the bill is repealed July 1, 2022.
26DIVISION XI — HOUSING TRUST FUND. Under current law, 30
27percent of the real estate transfer tax receipts paid by county
28recorders to the treasurer of state are transferred to the
29housing trust fund in any one fiscal year, subject to a $3
30million cap; moneys in excess of the cap are deposited in the
31general fund of the state. The bill increases the cap to $7
32million.
33DIVISION XII — HIGH QUALITY JOBS PROGRAM — DAY CARE
34CENTERS. The bill permits the economic development authority
35to consider whether a proposed project under the high quality
-43-1jobs program will include a licensed child care center for use
2by a business’s employees when determining the eligibility of
3the business to participate in the program.
4DIVISION XIII — WORKFORCE HOUSING TAX CREDITS. Code
5section 15.119 sets an aggregate tax credit amount limit for
6certain economic development programs. Under current law, the
7workforce housing tax incentives program administered under
8Code sections 15.351 through 15.356 shall not be allocated
9more than $25 million in tax credits, and of the tax credits
10allocated to this program, $10 million is reserved for
11allocation to qualified housing projects in small cities. This
12division increases the workforce housing tax credit allocations
13from $25 million to $30 million. Of the moneys allocated
14to workforce housing tax credits, the bill increases the tax
15credits reserved for qualified housing projects in small cities
16from $10 million to $15 million.
17DIVISION XIV — DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM
18AND FUND.
19TRANSFERS. The bill permits the authority to transfer
20unobligated moneys in Code section 16.46 (senior living
21revolving loan program fund), 16.47 (home and community-based
22services revolving loan program fund), 16.48 (transitional
23housing revolving loan program fund), or 16.49 (community
24housing and services for persons with disabilities revolving
25loan program fund) to the disaster recovery housing assistance
26fund created in the bill.
27After the prior written consent and approval of the
28governor, the bill permits the executive director of the Iowa
29finance authority to transfer any unobligated moneys in any
30fund created pursuant to Code section 16.5(1)(s), for deposit
31in the fund. The bill waives the prior written consent and
32approval of the director of the department of management to
33transfer the unobligated moneys.
34After prior written approval of the governor, the bill
35permits the director of the Iowa economic development authority
-44-1to transfer any unobligated and unencumbered moneys in any fund
2created pursuant to Code section 15.106A(1)(o), for deposit in
3the fund.
4The bill requires any transfer to be reported to the
5legislative fiscal committee of the legislative council on a
6monthly basis.
7DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — FUND. The
8bill creates a disaster recovery housing assistance fund
9(fund) within the authority. The purpose of the fund is for
10the development and operation of a forgivable loan and grant
11program for homeowners and renters with disaster-affected
12homes, and for an eviction prevention program created in the
13bill. The bill prohibits the authority from using more than
145 percent of the moneys in the fund on July 1 of a fiscal year
15for purposes of administrative costs and other program support
16during the fiscal year.
17The bill directs the authority to establish and administer
18a disaster recovery assistance program (program) and to
19use the moneys in the fund to provide forgivable loans to
20eligible homeowners and grants to eligible renters with
21disaster-affected homes. “Disaster-affected home” is defined
22in the bill as a primary residence that is destroyed or damaged
23due to a natural disaster that occurs on or after the effective
24date of the division, and that is located in a county that due
25to the natural disaster is the subject of a state of disaster
26emergency proclamation by the governor that authorizes disaster
27recovery housing assistance; or a primary residence that is
28destroyed or damaged due to a natural disaster that occurred
29on or after March 12, 2019, but before the effective date of
30the division, and is located in a county that has been declared
31a major disaster by the president of the United States on or
32after March 12, 2019, but before the effective date of the
33division, and is located in a county where individuals are
34eligible for federal individual assistance.
35The authority may enter into an agreement with one or
-45-1more local program administrators to administer the program
2and moneys in the fund may be expended following a state of
3disaster emergency proclamation by the governor that authorizes
4disaster recovery housing assistance or the eviction prevention
5program. “Local program administrator” is defined in the bill
6as cities of Ames, Cedar Falls, Cedar Rapids, Council Bluffs,
7Davenport, Des Moines, Dubuque, Iowa City, Waterloo, and West
8Des Moines; a council of governments whose territory includes
9at least one county that is the subject of the state of
10disaster emergency proclamation by the governor that authorizes
11disaster recovery housing assistance or the eviction prevention
12program; a community action agency as defined in Code section
13216A.91 and whose territory includes at least one county that
14is the subject of the state of disaster emergency proclamation
15by the governor that authorizes disaster recovery housing
16assistance or the eviction prevention program; or a qualified
17local organization or governmental entity as determined by rule
18by the authority.
19To be considered for a forgivable loan or grant under the
20program, the homeowner or renter must register for the disaster
21case management program established pursuant to Code section
2229C.20B. The disaster case manager may refer the homeowner or
23renter to the appropriate local program administrator.
24DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — HOMEOWNERS.
25 To be eligible for a forgivable loan under the program,
26the bill requires a homeowner to own a disaster-affected
27home located in a county that has been proclaimed a state
28of disaster emergency by the governor; the home must have
29sustained damage greater than the damage that is covered by the
30homeowner’s property and casualty insurance policy insuring the
31home plus any other state or federal disaster-related financial
32assistance that the homeowner is eligible to receive; an
33administrator must deem the home suitable for rehabilitation or
34damaged beyond reasonable repair; if the homeowner is seeking
35a forgivable loan for the repair or rehabilitation of the
-46-1homeowner’s disaster-affected home, the home cannot be proposed
2for buyout by the county or city in which the home is located,
3or the disaster-affected home is eligible for a buyout, but
4the homeowner is requesting a forgivable loan for the repair
5or rehabilitation of the homeowner’s disaster-affected home
6in lieu of a buyout; and the assistance does not duplicate
7benefits provided by other disaster assistance programs.
8If a homeowner is referred to an administrator by the
9homeowner’s case manager, the bill allows the authority to
10award a forgivable loan to the eligible homeowner for repair
11or rehabilitation of the disaster-affected home, or for down
12payment assistance on the purchase of replacement housing,
13and the cost of reasonable repairs to be performed on the
14replacement housing to render it decent, safe, sanitary, and
15in good repair. Replacement housing purchased by a homeowner
16cannot be located in a 100-year floodplain. “Decent, safe,
17sanitary, and in good repair” is defined in the bill to mean
18the same as described in 24 C.F.R.§5.703. “Replacement
19housing” is defined in the bill as housing purchased by a
20homeowner to replace a disaster-affected home that is destroyed
21or damaged beyond reasonable repair as determined by a local
22program administrator.
23The authority shall determine the interest rate for the
24forgivable loan.
25If a homeowner who has been awarded a forgivable loan sells
26a disaster-affected home or replacement housing for which the
27homeowner received the forgivable loan prior to the end of the
28loan term, the remaining principal on the forgivable loan shall
29be due and payable.
30DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — RENTERS.
31 To be eligible for a grant under the program, the bill
32requires the local program administrator to either deem
33the disaster-affected home of the renter suitable for
34rehabilitation but unsuitable for current short-term
35habitation, or damaged beyond reasonable repair; and the
-47-1assistance does not duplicate benefits provided by any other
2disaster assistance program.
3DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — REPORT. The
4bill requires the authority to annually submit a report to
5the general assembly detailing the disaster recovery housing
6assistance program.
7EVICTION PREVENTION PROGRAM. The bill requires the
8authority to establish and administer an eviction prevention
9program. Under the eviction prevention program, the authority
10awards grants from the disaster recovery housing assistance
11fund to eligible renters and eviction prevention partners.
12Grants may be awarded upon a state of disaster emergency
13proclamation by the governor that authorizes the eviction
14prevention program. The bill defines “eligible renter” to mean
15a renter whose income meets the qualifications of the program,
16who is at risk of eviction, and who resides in a county that
17is the subject of a state of disaster emergency proclamation
18by the governor that also authorizes the eviction prevention
19program. The bill defines “eviction prevention partner” to
20mean a qualified local organization or governmental entity as
21determined by rule by the authority.
22The bill requires grants awarded to eligible renters to be
23used for short-term financial rent assistance to keep eligible
24renters in the current residence of the renter. Grants awarded
25to eviction prevention partners are to be used to pay for rent
26or services provided to eligible renters for the purpose of
27preventing the eviction of eligible renters.
28DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — RULES. The
29authority shall adopt rules pursuant to Code chapter 17A to
30implement and administer the program including establishing
31the maximum forgivable loan and grant amounts, the terms of
32forgivable loans, and income qualifications of eligible renters
33in the eviction prevention program.
34DIVISION XV — BROWNFIELD REDEVELOPMENT PROGRAM. Current
35law provides that the economic development authority
-48-1(authority) cannot allocate more than $10 million in tax
2credits in a fiscal year to the brownfield redevelopment
3program (brownfields). The division increases the maximum
4allocation to $15 million. The division provides that tax
5credits that are not awarded or that are revoked (including
6revoked within the previous five years) under brownfields may
7be awarded during the next annual application period, and those
8tax credits do not count against the $15 million tax credit
9maximum.
10Under current law, the definition of “brownfield site”
11excludes a property which has been placed, or is proposed
12for placement, on the national priorities list established
13pursuant to the federal Comprehensive Environmental Response,
14Compensation, and Liability Act, 42 U.S.C. §9601 et seq. The
15division removes this exclusion.
16Under current law, Code section 15.293A, redevelopment tax
17credits, is repealed on June 30, 2021. The division changes
18the repeal date to June 30, 2031, and the repeal date is
19effective upon enactment of the division. Under current law,
20Code section 15.293B, related to the application, review,
21registration, and authorization of projects awarded tax credits
22under brownfields is repealed on June 30, 2021. The division
23changes the repeal date to June 30, 2031, and the repeal date
24is effective upon enactment of the division.
25DIVISION XVI — HIGH QUALITY JOBS AND RENEWABLE CHEMICAL
26PRODUCTION TAX CREDITS. The division reduces the maximum
27amount of tax credits that the economic development authority
28(authority) may allocate to the high quality jobs program for
29the fiscal year beginning July 1, 2021, and for each fiscal
30year thereafter, from $105 million to $70 million.
31DIVISION XVII — BONUS DEPRECIATION. Currently, when a
32business buys equipment and other capital assets, the business
33is allowed to deduct a portion of the cost of such property
34as depreciation over a certain period for federal and state
35individual or corporate income tax purposes. Federal taxpayers
-49-1are allowed to immediately deduct a higher portion of the cost
2of such property by claiming additional first-year depreciation
3(bonus depreciation). Iowa has recently adopted “rolling
4conformity” with federal tax law but did not conform with
5federal bonus depreciation provisions, meaning a taxpayer
6deducts the cost of the equipment or other capital assets by
7claiming depreciation over a longer time period for Iowa income
8tax purposes. The bill applies retroactively by conforming
9Iowa tax provisions with federal bonus depreciation provisions
10for equipment or other capital assets placed in service on or
11after January 1, 2021, for tax years beginning on or after
12that date. By conforming with federal bonus depreciation
13provisions for tax years beginning on or after January 1, 2021,
14Iowa automatically conforms with the federal limitation on
15business interest expense deductions in Code sections 422.7(60)
16and 422.35(27). Currently, if a taxpayer does not claim
17“bonus depreciation”, Iowa does not conform with the federal
18limitation on business expenses.
19DIVISION XVIII — ENERGY INFRASTRUCTURE REVOLVING LOAN
20PROGRAM. The division modifies Code section 476.46, alternate
21energy revolving loan program, to prohibit the Iowa energy
22center from initiating any new loans after June 30, 2021. The
23division also requires that all loan payments received after
24June 30, 2021, be deposited, and any moneys remaining in the
25alternate energy revolving loan fund after June 30, 2021,
26be transferred, to the newly created energy infrastructure
27revolving loan fund.
28The division creates an energy infrastructure revolving
29fund (fund) in the office of the treasurer of state to be
30administered by the Iowa energy center (center). Moneys in
31the fund are to be used to provide financial assistance for
32the development and construction of energy infrastructure,
33including projects as described in the bill. “Energy
34infrastructure” and “financial assistance” are defined in the
35bill.
-50- 1The center is required to establish and administer an energy
2infrastructure revolving loan program (program) to encourage
3the development of energy infrastructure within the state. An
4individual, business, rural electric cooperative, or municipal
5utility located and operating in this state is eligible for
6financial assistance under the program. With the approval of
7the center’s governing board, the authority must determine the
8amount and the terms of all financial assistance awarded to an
9individual, business, rural electric cooperative, or municipal
10utility under the program. All agreements and administrative
11authority are vested in the center’s governing board. The
12authority may use not more than 5 percent of the moneys in
13the fund at the beginning of each fiscal year for purposes of
14administrative costs, marketing, technical assistance, and
15other program support.
16DIVISION XIX — INVESTMENTS IN QUALIFYING BUSINESSES AND
17EQUITY INVESTMENTS IN INNOVATION FUNDS. Under current law,
18the authority must allocate $2 million to investments in
19qualifying businesses and $8 million to equity investments in
20innovation funds (equity investments). The division limits
21the authority’s tax credit allocations for investments in
22qualifying businesses and equity investments to a maximum
23aggregate of $10 million.
24The division requires the authority to determine on or
25before June 30 of each fiscal year the amount of tax credits
26to be allocated to each. In addition, any amount of tax
27credits allocated and not awarded in that fiscal year must be
28reallocated to either investments in qualifying businesses
29or to equity investments for the next fiscal year, and those
30tax credits do not count towards the maximum aggregate of $10
31million. This applies to tax credits allocated on or after the
32fiscal year beginning July 1, 2021, and for each fiscal year
33thereafter.
34The division modifies the maximum amount of an investment
35tax credit that may be issued to a natural person and the
-51-1person’s spouse or dependent from a calendar year basis to a
2fiscal year basis. The maximum amount of tax credits that may
3be issued for equity investments in any one qualifying business
4is also modified from a calendar year to a fiscal year.
5This division of the bill is effective upon enactment.
6DIVISION XX — RURAL ECONOMIC DEVELOPMENT. The bill
7provides for tax incentives for eligible businesses in rural
8communities. “Rural community” is defined in the bill. The
9tax incentives are based upon the number of jobs created or
10retained that pay at least 110 percent of the qualifying wage
11threshold and the amount of the qualifying investment. The tax
12incentives are based upon a schedule as detailed in the bill.
13The bill also details the requirements for a community
14match, based on the size of the community, in order for an
15eligible business to be awarded assistance by the economic
16development authority (authority) from the fund created in Code
17section 15.335B.
18The bill directs the authority to adopt rules to administer
19the high quality jobs program.
20This division of the bill takes effect upon enactment.
21DIVISION XXI — TELEHEALTH — MENTAL HEALTH PARITY. The
22bill requires a health carrier to reimburse a health care
23professional or a facility for health care services for a
24mental health condition, illness, injury, or disease provided
25to a covered person via telehealth on the same basis and at the
26same rate as the health carrier would apply to the same health
27care services provided to the covered person by the health
28care professional or facility in person. “Health carrier” is
29defined in the bill.
30The bill amends the definition of “telehealth” to specify
31that the delivery of health care services via telehealth must
32include real-time interactive audio, video, or electronic
33media, regardless of the location of the health care
34professional or the covered person.
35The bill prohibits a health carrier from requiring an
-52-1additional health care professional to be located in the same
2room as a covered person while health care service for a mental
3health condition, illness, injury, or disease are provided via
4telehealth by another health care professional to the covered
5person.
6This division of the bill is effective upon enactment and
7applies retroactively to health care services for a mental
8health condition, illness, injury, or disease provided to a
9covered person via telehealth on or after January 1, 2021.
10DIVISION XXII — SEPTIC TANKS. The bill prohibits a county
11from requiring the payment of a penalty, fine, or fee due to
12a resident’s noncompliance with rules adopted by the county
13sanitarian regarding periodic septic tank pumping as part of
14routine maintenance.
15DIVISION XXIII — EMERGENCY VOLUNTEER — TAX CREDIT. The
16bill relates to the individual income tax credits available to
17volunteer fire fighters, volunteer emergency medical services
18personnel members, and reserve peace officers.
19The bill increases to $250 from $100 the maximum amount per
20individual of the income tax credits for services performed
21during the year. The tax credit increase applies retroactively
22to tax years beginning on or after January 1, 2021.
23DIVISION XXIV — FOOD BANKS. The bill exempts from the sales
24tax the purchase price from the sale or rental of tangible
25personal property or specified digital products, or services
26furnished, to a nonprofit food bank if the property or services
27are to be used by the nonprofit food bank for a charitable
28purpose. “Nonprofit food bank” is defined in the bill.
29By operation of Code section 423.6, an item exempt from the
30imposition of the sales tax is also exempt from the use tax
31imposed in Code section 423.5.
32DIVISION XXV — SPECIFIED DIGITAL PRODUCTS SALES AND
33USE TAX EXEMPTION — MUNICIPAL UTILITIES AND RURAL ELECTRIC
34COOPERATIVES. The bill exempts from the sales and use tax the
35sales price of specified digital products sold to a municipally
-53-1owned public utility engaged in selling gas, electricity, heat,
2pay television service, or communication service to the general
3public.
4The bill also exempts from the sales and use tax the sales
5price of specified digital products sold to and used in
6connection with the operation of a rural electric cooperative.
7The term “specified digital products” is defined in Code
8section 423.1(55B).
9DIVISION XXVI — CONSUMER LOANS. Currently, except for
10certain loans that are open-end credit transactions or loans
11secured by a certificate of title, a supervised financial
12organization or a mortgage lender may contract for and receive
13a finance charge on a consumer loan, calculated according to
14the actuarial method, not exceeding 21 percent per year on the
15unpaid balance of the amount financed. The bill changes the
16rate a supervised financial organization or a mortgage lender
17may contract for and receive a finance charge on a consumer
18loan to rate not to exceed the maximum rate authorized by the
19federal Military Lending Act, 10 U.S.C. §987(b), which is
20currently 36 percent.
21DIVISION XXVII — INDIVIDUAL INCOME TAX — CHECKOFFS.
22 Currently, there are four checkoffs available against the
23individual income tax — the joint veterans trust fund and the
24volunteer fire fighter preparedness fund checkoff, the fish and
25game protection fund checkoff, the Iowa state fair foundation
26checkoff, and the child abuse prevention program fund checkoff.
27Under current law, when the same four income tax return
28checkoffs have been provided on the individual income tax
29return for two consecutive tax years, the two checkoffs that
30have received the least amount of contributions are repealed.
31The bill does not repeal any of the four checkoffs and
32requires the same four individual income tax checkoffs included
33on the 2020 individual income tax return form be included on
34the individual income tax form until such time the two-year
35contribution calculation for inclusion on the individual income
-54-1tax form is made beginning with the 2024 tax year.
-55-jm/jh
2activities, including future tax contingencies, state
3income tax deductions, tax credits, the state inheritance
4tax, the sales and use tax, disaster recovery housing,
5energy infrastructure, telehealth parity, consumer loans,
6local regulations, and other properly related matters, and
7including effective date and retroactive applicability
8provisions.
9BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2FUTURE TAX CHANGES
3 Section 1. 2018 Iowa Acts, chapter 1161, section 133, is
4amended by striking the section and inserting in lieu thereof
5the following:
6SEC. 133. EFFECTIVE DATE. This division of this Act takes
7effect January 1, 2023.
8DIVISION II
9child dependent and development tax credits
10 Sec. 2. Section 422.12C, subsection 1, paragraphs f and g,
11Code 2021, are amended to read as follows:
12f. For a taxpayer with net income of forty thousand dollars
13or more but less than forty-five ninety thousand dollars,
14thirty percent.
15g. For a taxpayer with net income of forty-five ninety
16 thousand dollars or more, zero percent.
17 Sec. 3. Section 422.12C, subsection 2, paragraph a, Code
182021, is amended to read as follows:
19a. The taxes imposed under this subchapter, less the amounts
20of nonrefundable credits allowed under this subchapter, may
21be reduced by an early childhood development tax credit equal
22to twenty-five percent of the first one thousand dollars
23which the taxpayer has paid to others for each dependent, as
24defined in the Internal Revenue Code, ages three through five
25for early childhood development expenses. In determining the
26amount of early childhood development expenses for the tax year
27beginning in the 2006 calendar year only, such expenses paid
28during November and December of the previous tax year shall
29be considered paid in the tax year for which the tax credit
30is claimed. This credit is available to a taxpayer whose net
31income is less than forty-five ninety thousand dollars. If the
32early childhood development tax credit is claimed for a tax
33year, the taxpayer and the taxpayer’s spouse shall not claim
34the child and dependent care credit under subsection 1.
35 Sec. 4. RETROACTIVE APPLICABILITY. This division of this
-1-1Act applies retroactively to tax years beginning on or after
2January 1, 2021.
3DIVISION III
4COVID-19 RELATED GRANTS — TAXATION
5 Sec. 5. Section 422.7, subsection 62, Code 2021, is amended
6to read as follows:
762. a. Subtract, to the extent included, the amount of
8any financial assistance qualifying COVID-19 grant provided to
9an eligible small issued to an individual or business by the
10economic development authority under the Iowa small business
11relief grant program created during calendar year 2020 to
12provide financial assistance to eligible small businesses
13economically impacted by the COVID-19 pandemic, the Iowa
14finance authority, or the department of agriculture and land
15stewardship.
16b. For purposes of this subsection, “qualifying COVID-19
17grant” includes any grant identified by the department by rule
18that was issued under a grant program administered by the
19economic development authority, Iowa finance authority, or
20the department of agriculture and land stewardship to provide
21financial assistance to individuals and businesses economically
22impacted by the COVID-19 pandemic.
23c. The economic development authority, Iowa finance
24authority, or the department of agriculture and land
25stewardship shall notify the department of any COVID-19 grant
26program that may qualify under this subsection in the manner
27and form prescribed by the department.
28d. This subsection is repealed January 1, 2024, and does not
29apply to tax years beginning on or after that date.
30 Sec. 6. Section 422.35, subsection 30, Code 2021, is amended
31to read as follows:
3230. a. Subtract, to the extent included, the amount of
33any financial assistance qualifying COVID-19 grant provided
34to an eligible small issued to a business by the economic
35development authority under the Iowa small business relief
-2-1grant program created during calendar year 2020 to provide
2financial assistance to eligible small businesses economically
3impacted by the COVID-19 pandemic, the Iowa finance authority,
4or the department of agriculture and land stewardship.
5b. For purposes of this subsection, “qualifying COVID-19
6grant” includes any grant identified by the department by rule
7that was issued under a grant program administered by the
8economic development authority, Iowa finance authority, or
9the department of agriculture and land stewardship to provide
10financial assistance to businesses economically impacted by the
11COVID-19 pandemic.
12c. The economic development authority, Iowa finance
13authority, or the department of agriculture and land
14stewardship shall notify the department of any COVID-19 grant
15program that may qualify under this subsection in the manner
16and form prescribed by the department.
17d. This subsection is repealed January 1, 2024, and does not
18apply to tax years beginning on or after that date.
19 Sec. 7. EFFECTIVE DATE. This division of this Act, being
20deemed of immediate importance, takes effect upon enactment.
21 Sec. 8. RETROACTIVE APPLICABILITY. This division of this
22Act applies retroactively to March 23, 2020, for tax years
23ending on or after that date.
24DIVISION IV
25federal paycheck protection program
26 Sec. 9. FEDERAL PAYCHECK PROTECTION PROGRAM.
27Notwithstanding any other provision of the law to the contrary,
28for any tax year ending after March 27, 2020, Division N, Tit.
29II, subtit.B, §276 and §278(a), of the federal Consolidated
30Appropriations Act, 2021, Pub.L. No.116-260, applies in
31computing net income for state tax purposes under section 422.7
32or 422.35.
33 Sec. 10. EFFECTIVE DATE. This division of this Act, being
34deemed of immediate importance, takes effect upon enactment.
35DIVISION V
-3-1SCHOOL TUITION ORGANIZATION TAX CREDIT
2 Sec. 11. Section 422.11S, subsection 1, Code 2021, is
3amended to read as follows:
41. a. The taxes imposed under this subchapter, less the
5credits allowed under section 422.12, shall be reduced by a
6school tuition organization tax credit equal to sixty-five
7percent the following percentage of the amount of the voluntary
8cash or noncash contributions made by the taxpayer during the
9applicable tax year to a school tuition organization, subject
10to the total dollar value of the organization’s tax credit
11certificates as computed in subsection 8.:
12(1) For the tax year beginning on or after January 1, 2021,
13but before January 1, 2022, sixty-five percent.
14(2) For the tax year beginning on or after January 1, 2022,
15but before January 1, 2023, seventy-two percent.
16(3) For the tax year beginning on or after January 1, 2023,
17but before January 1, 2024, seventy-eight percent.
18(4) For the tax year beginning on or after January 1, 2024,
19but before January 1, 2025, eighty-five percent.
20(5) For tax years beginning on or after January 1, 2025,
21eighty-seven percent.
22b. The tax credit shall be claimed by use of a tax credit
23certificate as provided in subsection 7.
24 Sec. 12. Section 422.11S, subsection 8, paragraph a,
25subparagraph (2), Code 2021, is amended to read as follows:
26(2) (a) “Total approved tax credits” means for the 2006
27calendar year, two million five hundred thousand dollars, for
28the 2007 calendar year, five million dollars, for calendar
29years beginning on or after January 1, 2008, but before January
301, 2012, seven million five hundred thousand dollars, for
31calendar years beginning on or after January 1, 2012, but
32before January 1, 2014, eight million seven hundred fifty
33thousand dollars, for calendar years beginning on or after
34January 1, 2014, but before January 1, 2019, twelve million
35dollars, and for calendar years beginning on or after January
-4-11, 2019, but before January 1, 2020, thirteen million dollars,
2and for calendar years beginning on or after January 1, 2020,
3but before January 1, 2022, fifteen million dollars, for
4calendar years beginning on or after January 1, 2022, but
5before January 1, 2023, sixteen million five hundred thousand
6dollars, for calendar years beginning on or after January 1,
72023, but before January 1, 2024, eighteen million dollars,
8for calendar years beginning on or after January 1, 2024, but
9before January 1, 2025, nineteen million five hundred thousand
10dollars, and for calendar years beginning on or after January
111, 2025, twenty million dollars.
12(b) (i) During any calendar year beginning on or after
13January 1, 2022, if the amount of awarded tax credits from the
14preceding calendar year are equal to or greater than ninety
15percent of the total approved tax credits for the current
16calendar year, the total approved tax credits for the current
17calendar year shall equal the product of ten percent multiplied
18by the total approved tax credits for the current calendar year
19plus the total approved tax credits for the current calendar
20year.
21(ii) If total approved tax credits are recomputed pursuant
22to subparagraph subdivision (i), the total approved tax credits
23shall equal the previous total approved tax credits recomputed
24pursuant to subparagraph subdivision (i) for purposes of future
25recomputations under subparagraph subdivision (i), provided
26that the maximum total approved tax credits recomputed pursuant
27to this subparagraph division (b) shall not exceed twenty
28million dollars in a calendar year.
29 Sec. 13. RETROACTIVE APPLICABILITY. This division of this
30Act applies retroactively to January 1, 2021, for tax years
31beginning on or after that date.
32DIVISION VI
33TARGETED JOBS WITHHOLDING CREDIT
34 Sec. 14. Section 403.19A, subsection 3, paragraph c,
35subparagraph (2), Code 2021, is amended to read as follows:
-5- 1(2) The pilot project city and the economic development
2authority shall not enter into a withholding agreement after
3June 30, 2021 2026.
4DIVISION VII
5ECONOMIC EMERGENCY FUND — EXCESS MONEYS
6 Sec. 15. Section 8.55, subsection 2, Code 2021, is amended
7by striking the subsection and inserting in lieu thereof the
8following:
92. The maximum balance of the fund is the amount equal to
10two and one-half percent of the adjusted revenue estimate for
11the fiscal year. If the amount of moneys in the fund exceeds
12the maximum balance, moneys in excess of the maximum balance
13shall be distributed as follows:
14a. An amount equal to not more than five percent of
15the adjusted revenue estimate for the fiscal year shall be
16transferred to the general fund of the state.
17b. The remainder of the excess, if any, shall be transferred
18to the taxpayer relief fund created in section 8.57E.
19 Sec. 16. EFFECTIVE DATE. This division of this Act takes
20effect July 1, 2022.
21DIVISION VIII
22TAXPAYER RELIEF FUND — TAX CREDIT
23 Sec. 17. Section 8.57E, subsection 2, Code 2021, is amended
24to read as follows:
252. Moneys in the taxpayer relief fund shall only be used
26pursuant to appropriations or transfers made by the general
27assembly for tax relief, including but not limited to increases
28in the general retirement income exclusion under section 422.7,
29subsection 31, or reductions in income tax rates. During
30each fiscal year beginning on or after July 1, 2021, in which
31the balance of the taxpayer relief fund equals or exceeds one
32hundred twenty million dollars, there is transferred from the
33taxpayer relief fund to the Iowa taxpayer relief tax credit
34fund created in section 422.12O the entire balance of the
35taxpayer relief fund to be used for the Iowa taxpayer relief
-6-1tax credit in accordance with section 422.12O, subsection 5.
2 Sec. 18. Section 257.21, subsection 2, Code 2021, is amended
3to read as follows:
42. The instructional support income surtax shall be imposed
5on the state individual income tax for the calendar year during
6which the school’s budget year begins, or for a taxpayer’s
7fiscal year ending during the second half of that calendar year
8and after the date the board adopts a resolution to participate
9in the program or the first half of the succeeding calendar
10year, and shall be imposed on all individuals residing in the
11school district on the last day of the applicable tax year.
12As used in this section, “state individual income tax” means
13the taxes computed under section 422.5, less the amounts of
14nonrefundable credits allowed under chapter 422, subchapter II,
15except for the Iowa taxpayer relief tax credit allowed under
16section 422.12O.
17 Sec. 19. NEW SECTION. 422.12O Iowa taxpayer relief tax
18credit — fund.
191. For purposes of this section, unless the context
20otherwise requires:
21a. “Eligible individual” means, with respect to a tax year,
22an individual who makes and files an individual income tax
23return pursuant to section 422.13. “Eligible individual” does
24not include an estate or trust, or an individual for whom an
25individual income tax return was not timely filed, including
26extensions.
27b. “Unclaimed tax credit” means, with respect to a tax
28year, the aggregate amount by which the Iowa taxpayer relief
29tax credits that were eligible to be claimed by eligible
30individuals, if any, exceeds the Iowa taxpayer relief tax
31credits actually claimed by eligible individuals, if any.
322. The taxes imposed under this subchapter, less the credits
33allowed under this subchapter except the credits for withheld
34tax and estimated tax paid in section 422.16, shall be reduced
35by an Iowa taxpayer relief tax credit to an eligible individual
-7-1for the tax year beginning January 1 immediately preceding July
21 of any fiscal year during which a transfer, if any, is made
3from the taxpayer relief fund in section 8.57E to the Iowa
4taxpayer relief tax credit fund created in this section.
53. The credit shall be equal to the quotient of the amount
6transferred to the Iowa taxpayer relief tax credit fund in
7the applicable fiscal year, divided by the number of eligible
8individuals for the tax year immediately preceding the tax year
9for which the credit in this section is allowed, as determined
10by the director of revenue in accordance with this section,
11rounded down to the nearest whole dollar. The department of
12revenue shall draft the income tax form for any tax year in
13which a credit will be allowed under this section to provide
14the information and space necessary for eligible individuals to
15claim the credit.
164. Any credit in excess of the taxpayer’s liability for the
17tax year is not refundable and shall not be credited to the tax
18liability for any following year or carried back to a tax year
19prior to the tax year in which the taxpayer claims the credit.
205. a. There is established within the state treasury
21under the control of the department an Iowa taxpayer relief
22tax credit fund consisting of any moneys transferred by the
23general assembly by law from the taxpayer relief fund created
24in section 8.57E for purposes of the credit provided in this
25section. For the fiscal year beginning July 1, 2021, and for
26each fiscal year thereafter, the department shall transfer from
27the Iowa taxpayer relief tax credit fund to the general fund
28of the state, the lesser of the balance of the Iowa taxpayer
29relief tax credit fund or an amount equal to the Iowa taxpayer
30relief tax credits claimed in that fiscal year, if any. Any
31moneys in the Iowa taxpayer relief tax credit fund which
32represent unclaimed tax credits shall immediately revert to
33the taxpayer relief fund created in section 8.57E. Interest
34or earnings on moneys in the Iowa taxpayer relief tax credit
35fund shall be credited to the taxpayer relief fund created in
-8-1section 8.57E.
2b. The moneys transferred to the general fund of the state
3in accordance with this subsection shall not be considered new
4revenues for purposes of the state general fund expenditure
5limitation under section 8.54 but instead as replacement of
6a like amount included in the expenditure limitation for the
7fiscal year in which the transfer is made.
8 Sec. 20. Section 422D.2, Code 2021, is amended to read as
9follows:
10422D.2 Local income surtax.
11A county may impose by ordinance a local income surtax as
12provided in section 422D.1 at the rate set by the board of
13supervisors, of up to one percent, on the state individual
14income tax of each individual residing in the county at the
15end of the individual’s applicable tax year. However, the
16cumulative total of the percents of income surtax imposed on
17any taxpayer in the county shall not exceed twenty percent.
18The reason for imposing the surtax and the amount needed
19shall be set out in the ordinance. The surtax rate shall be
20set to raise only the amount needed. For purposes of this
21section, “state individual income tax” means the tax computed
22under section 422.5, less the amounts of nonrefundable credits
23allowed under chapter 422, subchapter II, except for the Iowa
24taxpayer relief tax credit allowed under section 422.12O.
25 Sec. 21. EFFECTIVE DATE. This division of this Act, being
26deemed of immediate importance, takes effect upon enactment.
27 Sec. 22. RETROACTIVE APPLICABILITY. This division of this
28Act applies retroactively to January 1, 2021, for tax years
29beginning on or after that date.
30DIVISION IX
31state inheritance tax
32 Sec. 23. Section 450.10, Code 2021, is amended by adding the
33following new subsection:
34 NEW SUBSECTION. 7. a. In lieu of each rate of tax imposed
35in subsections 1 through 4, for property passing from the
-9-1estate of a decedent dying on or after July 1, 2021, but before
2July 1, 2022, there shall be imposed a rate of tax equal to
3the applicable tax rate in subsections 1 through 4, reduced by
4ten percent, and rounded to the nearest one-hundredth of one
5percent.
6b. In lieu of each rate of tax imposed in subsections 1
7through 4, for property passing from the estate of a decedent
8dying on or after July 1, 2022, but before July 1, 2023, there
9shall be imposed a rate of tax equal to the applicable tax rate
10in subsections 1 through 4, reduced by twenty percent, and
11rounded to the nearest one-hundredth of one percent.
12c. In lieu of each rate of tax imposed in subsections 1
13through 4, for property passing from the estate of a decedent
14dying on or after July 1, 2023, but before July 1, 2024, there
15shall be imposed a rate of tax equal to the applicable tax rate
16in subsections 1 through 4, reduced by thirty percent, and
17rounded to the nearest one-hundredth of one percent.
18d. In lieu of each rate of tax imposed in subsections 1
19through 4, for property passing from the estate of a decedent
20dying on or after July 1, 2024, but before July 1, 2025, there
21shall be imposed a rate of tax equal to the applicable tax
22rate in subsections 1 through 4, reduced by forty percent, and
23rounded to the nearest one-hundredth of one percent.
24e. In lieu of each rate of tax imposed in subsections 1
25through 4, for property passing from the estate of a decedent
26dying on or after July 1, 2025, but before July 1, 2026, there
27shall be imposed a rate of tax equal to the applicable tax
28rate in subsections 1 through 4, reduced by fifty percent, and
29rounded to the nearest one-hundredth of one percent.
30f. In lieu of each rate of tax imposed in subsections 1
31through 4, for property passing from the estate of a decedent
32dying on or after July 1, 2026, but before July 1, 2027, there
33shall be imposed a rate of tax equal to the applicable tax
34rate in subsections 1 through 4, reduced by sixty percent, and
35rounded to the nearest one-hundredth of one percent.
-10- 1g. In lieu of each rate of tax imposed in subsections 1
2through 4, for property passing from the estate of a decedent
3dying on or after July 1, 2027, but before July 1, 2028, there
4shall be imposed a rate of tax equal to the applicable tax rate
5in subsections 1 through 4, reduced by seventy percent, and
6rounded to the nearest one-hundredth of one percent.
7h. In lieu of each rate of tax imposed in subsections 1
8through 4, for property passing from the estate of a decedent
9dying on or after July 1, 2028, but before July 1, 2029, there
10shall be imposed a rate of tax equal to the applicable tax rate
11in subsections 1 through 4, reduced by eighty percent, and
12rounded to the nearest one-hundredth of one percent.
13i. In lieu of each rate of tax imposed in subsections 1
14through 4, for property passing from the estate of a decedent
15dying on or after July 1, 2029, but before July 1, 2030, there
16shall be imposed a rate of tax equal to the applicable tax rate
17in subsections 1 through 4, reduced by ninety percent, and
18rounded to the nearest one-hundredth of one percent.
19 Sec. 24. NEW SECTION. 450.98 Tax repealed.
20Effective July 1, 2030, this chapter shall not apply to
21property of estates of decedents dying on or after July 1,
222030. The inheritance tax shall not be imposed under this
23chapter in the event the decedent dies on or after July 1,
242030, and, to this extent, this chapter is repealed.
25 Sec. 25. NEW SECTION. 450B.8 Tax repealed.
26Effective July 1, 2030, this chapter shall not apply to
27property of estates of decedents dying on or after July 1,
282030. The qualified use inheritance tax shall not be imposed
29under this chapter in the event the decedent dies on or after
30July 1, 2030, and, to this extent, this chapter is repealed.
31 Sec. 26. CODE EDITOR DIRECTIVE. The Code editor is directed
32to remove chapters 450 and 450B from the Code and correct
33appropriate references to chapters 450 and 450B and appropriate
34references to the inheritance tax and qualified use inheritance
35tax effective July 1, 2040.
-11-1DIVISION X
2HIGH QUALITY JOBS — ELIGIBILITY REQUIREMENTS
3 Sec. 27. HIGH QUALITY JOBS — REDUCTIONS IN OPERATIONS.
41. Notwithstanding section 15.329, subsection 1, paragraph
5“b”, subparagraph (2), the economic development authority shall
6not presume that a reduction in operations is a reduction in
7operations while simultaneously applying for assistance with
8regard to a business that submits an application on or before
9June 30, 2022, if the business demonstrates to the satisfaction
10of the authority all of the following:
11a. That the reduction in operations occurred after March 1,
122020.
13b. That the reduction in operations was caused by the
14COVID-19 pandemic.
152. The economic development authority shall consider
16whether the benefit of the project proposed by a business
17under subsection 1 outweighs any negative impact related to
18the business’s reduction in operations. The business shall
19remain subject to all other eligibility requirements pursuant
20to section 15.329.
213. This section is repealed July 1, 2022.
22DIVISION XI
23housing trust fund
24 Sec. 28. Section 428A.8, subsection 3, Code 2021, is amended
25to read as follows:
263. Notwithstanding subsection 2, the amount of money that
27shall be transferred pursuant to this section to the housing
28trust fund in any one fiscal year shall not exceed three seven
29 million dollars. Any money that otherwise would be transferred
30pursuant to this section to the housing trust fund in excess
31of that amount shall be deposited in the general fund of the
32state.
33DIVISION XII
34HIGH QUALITY JOBS PROGRAM — DAY CARE CENTERS
35 Sec. 29. Section 15.327, Code 2021, is amended by adding the
-12-1following new subsection:
2 NEW SUBSECTION. 016. “Licensed center” means the same as
3defined in section 237A.1.
4 Sec. 30. Section 15.329, Code 2021, is amended by adding the
5following new subsection:
6 NEW SUBSECTION. 3A. In addition to the factors in
7subsection 3, in determining the eligibility of a business to
8participate in the program the authority may consider whether a
9proposed project will provide a licensed center for use by the
10business’s employees.
11DIVISION XIII
12workforce housing tax credits
13 Sec. 31. Section 15.119, subsection 2, paragraph g, Code
142021, is amended to read as follows:
15g. The workforce housing tax incentives program administered
16pursuant to sections 15.351 through 15.356. In allocating
17tax credits pursuant to this subsection, the authority shall
18not allocate more than twenty-five thirty million dollars for
19purposes of this paragraph. Of the moneys allocated under this
20paragraph, ten fifteen million dollars shall be reserved for
21allocation to qualified housing projects in small cities, as
22defined in section 15.352, that are registered on or after July
231, 2017.
24DIVISION XIV
25Disaster Recovery Housing Assistance Program and Fund
26 Sec. 32. NEW SECTION. 16.57A Transfer of unobligated or
27unencumbered funds — report.
281. Notwithstanding any other provision of law to the
29contrary, the authority may transfer any unobligated and
30unencumbered moneys in any revolving loan program fund created
31pursuant to section 16.46, 16.47, 16.48, or 16.49, for deposit
32in the disaster recovery housing assistance fund created in
33section 16.57B.
342. Notwithstanding section 8.39, and any other law to
35the contrary, with the prior written consent and approval of
-13-1the governor, the executive director of the authority may
2transfer any unobligated and unencumbered moneys in any fund
3created pursuant to section 16.5, subsection 1, paragraph
4“s”, for deposit in the disaster recovery housing assistance
5fund created in section 16.57B. The prior written consent and
6approval of the director of the department of management shall
7not be required to transfer the unobligated and unencumbered
8moneys.
93. Notwithstanding section 8.39, and any other law to the
10contrary, with the prior written approval of the governor, the
11director of the economic development authority may transfer
12any unobligated and unencumbered moneys in any fund created
13pursuant to section 15.106A, subsection 1, paragraph “o”,
14for deposit in the disaster recovery housing assistance fund
15created in section 16.57B.
164. Any transfer made under this section shall be reported in
17the same manner as provided in section 8.39, subsection 5.
18 Sec. 33. NEW SECTION. 16.57B Disaster recovery housing
19assistance program — fund.
201. Definitions. As used in this section, unless the context
21otherwise requires:
22a. “Disaster-affected home” means any of the following:
23(1) A primary residence that is destroyed or damaged due
24to a natural disaster that occurs on or after the effective
25date of this division of this Act, and the primary residence is
26located in a county that is the subject of a state of disaster
27emergency proclamation by the governor that authorizes disaster
28recovery housing assistance.
29(2) A primary residence that is destroyed or damaged due to
30a natural disaster that occurred on or after March 12, 2019,
31but before the effective date of this division of this Act, and
32is located in a county that has been declared a major disaster
33by the president of the United States on or after March 12,
342019, but before the effective date of this division of this
35Act, and is located in a county where individuals are eligible
-14-1for federal individual assistance.
2b. “Fund” means the disaster recovery housing assistance
3fund.
4c. “Local program administrator” means any of the following:
5(1) The cities of Ames, Cedar Falls, Cedar Rapids, Council
6Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Waterloo,
7and West Des Moines.
8(2) A council of governments whose territory includes at
9least one county that is the subject of a state of disaster
10emergency proclamation by the governor that authorizes disaster
11recovery housing assistance or the eviction prevention program
12under section 16.57C on or after the effective date of this
13division of this Act.
14(3) A community action agency as defined in section 216A.91
15and whose territory includes at least one county that is the
16subject of a state of disaster emergency proclamation by the
17governor that authorizes disaster recovery housing assistance
18or the eviction prevention program under section 16.57C on or
19after the effective date of this division of this Act.
20(4) A qualified local organization or governmental entity
21as determined by rules adopted by the authority.
22d. “Program” means the disaster recovery housing assistance
23program.
24e. “Replacement housing” means housing purchased
25by a homeowner or leased by a renter needed to replace
26a disaster-affected home that is destroyed or damaged
27beyond reasonable repair as determined by a local program
28administrator.
29f. “State of disaster emergency” means the same as described
30in section 29C.6, subsection 1.
312. Fund.
32a. (1) A disaster recovery housing assistance fund is
33created within the authority. The moneys in the fund shall be
34used by the authority for the development and operation of a
35forgivable loan and grant program for homeowners and renters
-15-1with disaster-affected homes, and for the eviction prevention
2program pursuant to section 16.57C.
3(2) Notwithstanding section 12C.7, subsection 2, interest
4or earnings on moneys deposited in the fund shall be credited
5to the fund. Notwithstanding section 8.33, moneys credited to
6the fund shall not revert at the close of a fiscal year.
7b. Moneys transferred by the authority for deposit in the
8fund, moneys appropriated to the fund, and any other moneys
9available to and obtained or accepted by the authority for
10placement in the fund shall be deposited in the fund.
11c. The authority shall not use more than five percent of
12the moneys in the fund on July 1 of a fiscal year for purposes
13of administrative costs and other program support during the
14fiscal year.
153. Program.
16a. The authority shall establish and administer a disaster
17recovery housing assistance program and shall use moneys in
18the fund to award forgivable loans to eligible homeowners and
19grants to eligible renters of disaster-affected homes. Moneys
20in the fund may be expended following a state of disaster
21emergency proclamation by the governor pursuant to section
2229C.6 that authorizes disaster recovery housing assistance.
23b. The authority may enter into an agreement with one or
24more local program administrators to administer the program.
254. Registration required. To be considered for a forgivable
26loan or grant under the program, a homeowner or renter must
27register for the disaster case management program established
28pursuant to section 29C.20B. The disaster case manager may
29refer the homeowner or renter to the appropriate local program
30administrator.
315. Homeowners.
32a. To be eligible for a forgivable loan under the program,
33all of the following requirements shall apply:
34(1) The homeowner’s disaster-affected home must have
35sustained damage greater than the damage that is covered by the
-16-1homeowner’s property and casualty insurance policy insuring the
2home plus any other state or federal disaster-related financial
3assistance that the homeowner is eligible to receive.
4(2) A local program administrator must either deem the
5disaster-affected home suitable for rehabilitation or damaged
6beyond reasonable repair.
7(3) The disaster-affected home is not eligible for buyout by
8the county or city where the disaster-affected home is located,
9or the disaster-affected home is eligible for a buyout by the
10county or city where the disaster-affected home is located, but
11the homeowner is requesting a forgivable loan for the repair
12or rehabilitation of the homeowner’s disaster-affected home in
13lieu of a buyout.
14(4) Assistance under the program must not duplicate
15benefits provided by any local, state, or federal disaster
16recovery assistance program.
17b. If a homeowner is referred to the authority or to a
18local program administrator by the disaster case manager of the
19homeowner, the authority may award a forgivable loan to the
20eligible homeowner for any of the following purposes:
21(1) Repair or rehabilitation of the disaster-affected home.
22(2) (a) Down payment assistance on the purchase of
23replacement housing, and the cost of reasonable repairs to be
24performed on the replacement housing to render the replacement
25housing decent, safe, sanitary, and in good repair.
26(b) Replacement housing shall not be located in a
27one-hundred-year floodplain.
28(c) For purposes of this subparagraph, “decent, safe,
29sanitary, and in good repair” means the same as described in 24
30C.F.R.§5.703.
31c. The authority shall determine the interest rate for the
32forgivable loan.
33d. If a homeowner who has been awarded a forgivable loan
34sells a disaster-affected home or replacement housing for which
35the homeowner received the forgivable loan prior to the end
-17-1of the loan term, the remaining principal on the forgivable
2loan shall be due and payable pursuant to rules adopted by the
3authority.
46. Renters.
5a. To be eligible for a grant under the program, all of the
6following requirements shall apply:
7(1) A local program administrator either deems
8the disaster-affected home of the renter suitable for
9rehabilitation but unsuitable for current short-term
10habitation, or the disaster-affected home is damaged beyond
11reasonable repair.
12(2) Assistance under the program must not duplicate
13benefits provided by any local, state, or federal disaster
14recovery assistance program.
15b. If a renter is referred to the authority or to a local
16program administrator by the disaster case manager of the
17renter, the authority may award a grant to the eligible renter
18to provide short-term financial assistance for the payment of
19rent for replacement housing.
207. Report. On or before January 31 of each year, the
21authority shall submit a report to the general assembly
22that identifies all of the following for the calendar year
23immediately preceding the year of the report:
24a. The date of each state of disaster emergency proclamation
25by the governor that authorized disaster recovery housing
26assistance under this section.
27b. The total number of forgivable loans and grants awarded.
28c. The total number of forgivable loans, and the amount of
29each loan awarded for repair or rehabilitation.
30d. The total number of forgivable loans, and the amount of
31each loan, awarded for down payment assistance on the purchase
32of replacement housing and the cost of reasonable repairs to be
33performed on the replacement housing to render the replacement
34housing decent, safe, sanitary, and in good repair.
35e. The total number of grants, and the amount of each grant,
-18-1awarded for rental assistance.
2f. The total number of forgivable loans and grants awarded
3in each county in which at least one homeowner or renter has
4been awarded a forgivable loan or grant.
5g. Each local program administrator involved in the
6administration of the program.
7h. The total amount of forgivable loan principal repaid.
8 Sec. 34. NEW SECTION. 16.57C Eviction prevention program.
91. a. “Eligible renter” means a renter whose income meets
10the qualifications of the program, who is at risk of eviction,
11and who resides in a county that is the subject of a state of
12disaster emergency proclamation by the governor that authorizes
13the eviction prevention program.
14b. “Eviction prevention partner” means a qualified local
15organization or governmental entity as determined by rule by
16the authority.
172. The authority shall establish and administer an eviction
18prevention program. Under the eviction prevention program,
19the authority shall award grants to eligible renters and to
20eviction prevention partners for purposes of this section.
21Grants may be awarded upon a state of disaster emergency
22proclamation by the governor that authorizes the eviction
23prevention program. Eviction prevention assistance shall be
24paid out of the fund established in section 16.57B.
253. a. Grants awarded to eligible renters pursuant to this
26section shall be used for short-term financial rent assistance
27to keep eligible renters in the current residences of such
28renters.
29b. Grants awarded to eviction prevention partners pursuant
30to this section shall be used to pay for rent or services
31provided to eligible renters for the purpose of preventing the
32eviction of eligible renters.
334. The authority may enter into an agreement with one or
34more local program administrators to administer the program.
35 Sec. 35. NEW SECTION. 16.57D Rules.
-19- 1The authority shall adopt rules pursuant to chapter 17A to
2implement and administer this part, including rules to do all
3of the following:
41. Establish the maximum forgivable loan and grant amounts
5awarded under the program.
62. Establish the terms of any forgivable loan provided under
7the program.
83. Income qualifications of eligible renters in the
9eviction prevention program.
10 Sec. 36. CODE EDITOR DIRECTIVE. The Code editor shall
11designate sections 16.57A through 16.57D, as enacted by
12this division of this Act, as a new part within chapter 16,
13subchapter VIII, and may redesignate the new and preexisting
14parts, replace references to sections 16.57A through 16.57D
15with references to the new part, and correct internal
16references as necessary, including references in subchapter or
17part headnotes.
18 Sec. 37. EFFECTIVE DATE. This division of this Act, being
19deemed of immediate importance, takes effect upon enactment.
20DIVISION XV
21BROWNFIELDS AND GRAYFIELDS
22 Sec. 38. Section 15.119, subsection 3, Code 2021, is amended
23to read as follows:
243. In allocating the amount of tax credits authorized
25pursuant to subsection 1 among the programs specified in
26subsection 2, the authority shall not allocate more than ten
27 fifteen million dollars for purposes of subsection 2, paragraph
28“f”.
29 Sec. 39. Section 15.291, subsection 2, Code 2021, is amended
30to read as follows:
312. “Brownfield site” means an abandoned, idled, or
32underutilized industrial or commercial facility where
33expansion or redevelopment is complicated by real or perceived
34environmental contamination. A brownfield site includes
35property contiguous with the property on which the individual
-20-1or commercial facility is located. A brownfield site does
2not include property which has been placed, or is proposed
3for placement, on the national priorities list established
4pursuant to the federal Comprehensive Environmental Response,
5Compensation, and Liability Act, 42 U.S.C. §9601 et seq.
6 Sec. 40. Section 15.293A, subsection 8, Code 2021, is
7amended to read as follows:
88. This section is repealed on June 30, 2021 2031.
9 Sec. 41. Section 15.293B, Code 2021, is amended by adding
10the following new subsection:
11 NEW SUBSECTION. 5A. a. Tax credits revoked under
12subsection 3 including tax credits revoked up to five years
13prior to the effective date of this division of this Act, and
14tax credits not awarded under subsection 4 or 5, may be awarded
15in the next annual application period established in subsection
161, paragraph “c”.
17b. Tax credits awarded pursuant to paragraph “a” shall not
18be counted against the limit under section 15.119, subsection
193.
20 Sec. 42. Section 15.293B, subsection 7, Code 2021, is
21amended to read as follows:
227. This section is repealed on June 30, 2021 2031.
23 Sec. 43. Section 15.352, subsection 1, Code 2021, is amended
24to read as follows:
251. “Brownfield site” means an abandoned, idled, or
26underutilized property where expansion or redevelopment is
27complicated by real or perceived environmental contamination.
28A brownfield site includes property contiguous with the site
29on which the property is located. A brownfield site does
30not include property which has been placed, or is proposed
31for placement, on the national priorities list established
32pursuant to the federal Comprehensive Environmental Response,
33Compensation, and Liability Act, 42 U.S.C. §9601 et seq.
34 Sec. 44. EFFECTIVE DATE. The following, being deemed of
35immediate importance, take effect upon enactment:
-21- 11. The section of this division of this Act amending section
215.293A, subsection 8.
32. The section of this division of this Act amending section
415.293B, subsection 7.
5DIVISION XVI
6HIGH QUALITY JOBS and renewable chemical production tax credits
7 Sec. 45. Section 15.119, subsection 2, paragraph a,
8subparagraphs (2) and (3), Code 2021, are amended to read as
9follows:
10(2) In allocating tax credits pursuant to this subsection
11for each fiscal year of the fiscal period beginning July 1,
122016, and ending June 30, 2021 the fiscal year beginning July
131, 2021, and for each fiscal year thereafter, the authority
14shall not allocate more than one hundred five seventy million
15dollars for purposes of this paragraph. This subparagraph (2)
16is repealed July 1, 2021.
17(3) (a) In allocating tax credits pursuant to this
18subsection for the fiscal year beginning July 1, 2021, and
19ending June 30, 2022, the authority shall not allocate more
20than one hundred five million dollars for purposes of this
21paragraph if the aggregate amount of renewable chemical
22production tax credits under section 15.319 that were awarded
23on or after July 1, 2018, but before July 1, 2021, equals or
24exceeds twenty-seven million dollars.
25(b) As soon as practicable after June 30, 2021, the
26authority shall notify the general assembly of the aggregate
27amount of renewable chemical production tax credits awarded
28under section 15.319 on or after July 1, 2018, but before
29July 1, 2021, and whether or not the tax credit allocation
30limitation described in subparagraph division (a) is
31applicable.
32(c) This subparagraph (3) is repealed July 1, 2022.
33DIVISION XVII
34BONUS DEPRECIATION
35 Sec. 46. Section 422.7, subsection 39A, Code 2021, is
-22-1amended by striking the subsection.
2 Sec. 47. Section 422.35, subsection 19A, Code 2021, is
3amended by striking the subsection.
4 Sec. 48. RETROACTIVE APPLICABILITY. This division of this
5Act applies retroactively to January 1, 2021, for tax years
6beginning on or after that date, and for qualified property
7placed in service on or after that date.
8DIVISION XVIII
9ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM
10 Sec. 49. Section 476.10A, subsection 2, Code 2021, is
11amended to read as follows:
122. Notwithstanding section 8.33, any unexpended moneys
13remitted to the treasurer of state under this section shall be
14retained for the purposes designated. Notwithstanding section
1512C.7, subsection 2, interest or earnings on investments or
16time deposits of the moneys remitted under this section shall
17be retained and used for the purposes designated, pursuant to
18section 476.46.
19 Sec. 50. Section 476.46, subsection 2, paragraph e,
20subparagraph (3), Code 2021, is amended to read as follows:
21(3) Interest on the fund shall be deposited in the fund.
22A portion of the interest on the fund, not to exceed fifty
23percent of the total interest accrued, shall be used for
24promotion and administration of the fund.
25 Sec. 51. Section 476.46, Code 2021, is amended by adding the
26following new subsections:
27 NEW SUBSECTION. 3. The Iowa energy center shall not
28initiate any new loans under this section after June 30, 2021.
29 NEW SUBSECTION. 4. Loan payments received under this
30section on or after July 1, 2021, and any other moneys in the
31fund on or after July 1, 2021, shall be deposited in the energy
32infrastructure revolving loan fund created in section 476.46A.
33 Sec. 52. NEW SECTION. 476.46A Energy infrastructure
34revolving loan program.
351. a. An energy infrastructure revolving loan fund is
-23-1created in the office of the treasurer of state and shall be
2administered by the Iowa energy center established in section
315.120.
4b. The fund may be administered as a revolving fund and may
5consist of any moneys appropriated by the general assembly for
6purposes of this section and any other moneys that are lawfully
7directed to the fund.
8c. Moneys in the fund shall be used to provide financial
9assistance for the development and construction of energy
10infrastructure, including projects that support electric or gas
11generation transmission, storage, or distribution; electric
12grid modernization; energy-sector workforce development;
13emergency preparedness for rural and underserved areas; the
14expansion of biomass, biogas, and renewable natural gas;
15innovative technologies; and the development of infrastructure
16for alternative fuel vehicles.
17d. Notwithstanding section 8.33, moneys appropriated in this
18section that remain unencumbered or unobligated at the close of
19the fiscal year shall not revert but shall remain available for
20expenditure for the purposes designated until the close of the
21succeeding fiscal year.
22e. Notwithstanding section 12C.7, subsection 2, interest
23or earnings on moneys in the fund shall be credited to the
24fund. A percentage of the total interest credited to the fund,
25not to exceed fifty percent, shall be used for promotion of
26the energy infrastructure revolving loan program and for the
27administration of the fund.
282. a. The Iowa energy center shall establish and administer
29an energy infrastructure revolving loan program to encourage
30the development of energy infrastructure within the state.
31b. An individual, business, rural electric cooperative, or
32municipal utility located and operating in this state shall be
33eligible for financial assistance under the program. With the
34approval of the Iowa energy center governing board established
35under section 15.120, subsection 2, the economic development
-24-1authority shall determine the amount and the terms of all
2financial assistance awarded to an individual, business, rural
3electric cooperative, or municipal utility under the program.
4All agreements and administrative authority sha11 be vested in
5the Iowa energy center governing board.
6c. The economic development authority may use not more than
7five percent of the moneys in the fund at the beginning of each
8fiscal year for purposes of administrative costs, marketing,
9technical assistance, and other program support.
103. For the purposes of this section:
11a. “Energy infrastructure” means land, buildings, physical
12plant and equipment, and services directly related to the
13development of projects used for, or useful for, electricity or
14gas generation, transmission, storage, or distribution.
15b. “Financial assistance” means the same as defined in
16section 15.102.
17 Sec. 53. ALTERNATE ENERGY REVOLVING LOAN FUND — MONEYS
18TRANSFERRED AND APPROPRIATED. Any unencumbered or unobligated
19moneys remaining after June 30, 2021, in the alternate energy
20revolving loan fund created pursuant to section 476.46, are
21transferred and appropriated to the energy infrastructure
22revolving loan fund created pursuant to section 476.46A, to be
23used for purposes of the energy infrastructure revolving loan
24program.
25DIVISION XIX
26INVESTMENTS IN QUALIFYING BUSINESSES AND EQUITY INVESTMENTS IN
27INNOVATION FUNDS
28 Sec. 54. Section 15.119, subsection 2, paragraph d, Code
292021, is amended to read as follows:
30d. (1) The tax credits for investments in qualifying
31businesses issued pursuant to section 15E.43 and for equity
32investments in an innovation fund pursuant to section 15E.52.
33In allocating tax credits pursuant to this subsection, the
34authority shall allocate two an aggregate of ten million
35dollars for purposes of this paragraph subparagraph, unless the
-25-1authority determines that the tax credits awarded will be less
2than that amount.
3(2) On or before June 30 of each fiscal year the authority
4shall determine the amount of tax credits to be allocated
5for the next fiscal year beginning July 1 to investments
6in qualifying businesses and to equity investments in an
7innovation fund under subparagraph (1). Any tax credits
8allocated for purposes of subparagraph (1) and not awarded
9in that fiscal year shall be reallocated to a purpose under
10subparagraph (1) for the next fiscal year and shall not be
11counted against the aggregate maximum of ten million dollars.
12 Sec. 55. Section 15.119, subsection 2, paragraph e, Code
132021, is amended by striking the paragraph.
14 Sec. 56. Section 15E.43, subsection 2, paragraphs b and c,
15Code 2021, are amended to read as follows:
16b. The maximum amount of a tax credit that may be issued
17per calendar fiscal year to a natural person and the person’s
18spouse or dependent shall not exceed one hundred thousand
19dollars combined. For purposes of this paragraph, a tax
20credit issued to a partnership, limited liability company, S
21corporation, estate, or trust electing to have income taxed
22directly to the individual shall be deemed to be issued to
23the individual owners based upon the pro rata share of the
24individual’s earnings from the entity. For purposes of this
25paragraph, “dependent” has the same meaning as provided by the
26Internal Revenue Code.
27c. The maximum amount of tax credits that may be issued
28per calendar fiscal year for equity investments in any one
29qualifying business shall not exceed five hundred thousand
30dollars.
31 Sec. 57. APPLICABILITY. The following applies to tax
32credits allocated on or after the fiscal year beginning July 1,
332021, and for each fiscal year thereafter:
34The section of this division of this Act amending section
3515.119, subsection 2, paragraph “d”.
-26-1 Sec. 58. EFFECTIVE DATE. This division of this Act, being
2deemed of immediate importance, takes effect upon enactment.
3DIVISION XX
4rural economic development
5 Sec. 59. Section 15.327, Code 2021, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 27. “Rural community” means any city
8located in this state with a population of thirty thousand
9or less in a county with a population of fifty thousand or
10less. A rural community located in more than one county shall
11be considered to be located in the county having the greatest
12taxable base within the city.
13 Sec. 60. Section 15.335A, subsection 1, unnumbered
14paragraph 1, Code 2021, is amended to read as follows:
15Tax incentives are available to eligible businesses as
16provided in this section subsection and subsection 1A. The
17incentives are based upon the number of jobs created or
18retained that pay at least one hundred twenty percent of the
19qualifying wage threshold and the amount of the qualifying
20investment made according to the following schedule:
21 Sec. 61. Section 15.335A, Code 2021, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 1A. Tax incentives are available to
24eligible businesses located in rural communities as provided
25in this subsection. The incentives are based upon the number
26of jobs created or retained that pay at least one hundred ten
27percent of the qualifying wage threshold and the amount of the
28qualifying investment made according to the following schedule:
29a. The number of jobs is zero and economic activity is
30furthered by the qualifying investment and the amount of the
31qualifying investment is one of the following:
32(1) Less than fifty thousand dollars, then the tax incentive
33is the investment tax credit of up to two percent.
34(2) At least fifty thousand dollars but less than two
35hundred fifty thousand dollars, then the tax incentives are the
-27-1investment tax credit of up to two percent and the sales tax
2refund.
3(3) At least two hundred fifty thousand dollars, then the
4tax incentives are the investment tax credit of up to two
5percent, the sales tax refund, and the additional research and
6development tax credit.
7b. The number of jobs is one but not more than five and the
8amount of the qualifying investment is one of the following:
9(1) Less than fifty thousand dollars, then the tax incentive
10is the investment tax credit of up to three percent.
11(2) At least fifty thousand dollars but less than two
12hundred fifty thousand dollars, then the tax incentives are the
13investment tax credit of up to three percent and the sales tax
14refund.
15(3) At least two hundred fifty thousand dollars, then the
16tax incentives are the investment tax credit of up to three
17percent, the sales tax refund, and the additional research and
18development tax credit.
19c. The number of jobs is six but not more than ten and the
20amount of the qualifying investment is one of the following:
21(1) Less than fifty thousand dollars, then the tax incentive
22is the investment tax credit of up to four percent.
23(2) At least fifty thousand dollars but less than two
24hundred fifty thousand dollars, then the tax incentives are the
25investment tax credit of up to four percent and the sales tax
26refund.
27(3) At least two hundred fifty thousand dollars, then the
28tax incentives are the investment tax credit of up to four
29percent, the sales tax refund, and the additional research and
30development tax credit.
31d. The number of jobs is eleven but not more than fifteen
32and the amount of the qualifying investment is one of the
33following:
34(1) Less than fifty thousand dollars, then the tax incentive
35is the investment tax credit of up to five percent.
-28- 1(2) At least fifty thousand dollars but less than two
2hundred fifty thousand dollars, then the tax incentives are the
3investment tax credit of up to five percent and the sales tax
4refund.
5(3) At least two hundred fifty thousand dollars, then the
6tax incentives are the investment tax credit of up to five
7percent, the sales tax refund, and the additional research and
8development tax credit.
9e. The number of jobs is sixteen or more and the amount of
10the qualifying investment is one of the following:
11(1) Less than fifty thousand dollars, then the tax incentive
12is the investment tax credit of up to six percent.
13(2) At least fifty thousand dollars but less than two
14hundred fifty thousand dollars, then the tax incentives are the
15investment tax credit of up to six percent and the sales tax
16refund.
17(3) At least two hundred fifty thousand dollars, then the
18tax incentives are the investment tax credit of up to six
19percent, the sales tax refund, and the additional research and
20development tax credit.
21f. The number of jobs is thirty-one but not more than forty
22and the amount of the qualifying investment is at least five
23million dollars, then the tax incentives are the local property
24tax exemption, the investment tax credit of up to seven
25percent, the sales tax refund, and the additional research and
26development tax credit.
27g. The number of jobs is forty-one but not more than sixty
28and the amount of the qualifying investment is at least five
29million dollars, then the tax incentives are the local property
30tax exemption, the investment tax credit of up to eight
31percent, the sales tax refund, and the additional research and
32development tax credit.
33h. The number of jobs is sixty-one but not more than
34eighty and the amount of the qualifying investment is at least
35five million dollars, then the tax incentives are the local
-29-1property tax exemption, the investment tax credit of up to nine
2percent, the sales tax refund, and the additional research and
3development tax credit.
4i. The number of jobs is eighty-one but not more than one
5hundred and the amount of the qualifying investment is at least
6five million dollars, then the tax incentives are the local
7property tax exemption, the investment tax credit of up to ten
8percent, the sales tax refund, and the additional research and
9development tax credit.
10j. The number of jobs is at least one hundred one and the
11amount of the qualifying investment is at least ten million
12dollars, then the tax incentives are the local property
13tax exemption, the investment tax credit of up to eleven
14percent, the sales tax refund, and the additional research and
15development tax credit.
16 Sec. 62. Section 15.335B, subsection 3, paragraph c, Code
172021, is amended to read as follows:
18c. (1) Consider the amount and type of the local community
19match. The as follows:
20(a) In a community with a population of less than five
21thousand, a community match shall not be required.
22(b) In a community with a population equal to or greater
23than five thousand, but less than fifteen thousand, a community
24match of at least five percent of the projected funds to be
25expended by the eligible business shall be required.
26(c) In a community with a population equal to or greater
27than fifteen thousand, but less than thirty thousand, a
28community match of at least ten percent of the projected funds
29to be expended by the eligible business shall be required.
30(d) In a community with a population equal to or greater
31than thirty thousand, a community match of at least twenty
32percent of the projected funds to be expended by the eligible
33business shall be required.
34(2) Notwithstanding subparagraph (1), theauthority may
35provide assistance to an early-stage business in a high-growth
-30-1industry regardless of the amount of local match involved.
2 Sec. 63. NEW SECTION. 15.337A Rules.
3The authority shall adopt rules pursuant to chapter 17A to
4administer this part.
5 Sec. 64. EFFECTIVE DATE. This division of this Act, being
6deemed of immediate importance, takes effect upon enactment.
7DIVISION XXI
8TELEHEALTH — MENTAL HEALTH PARITY
9 Sec. 65. Section 514C.34, subsection 1, Code 2021, is
10amended by adding the following new paragraphs:
11 NEW PARAGRAPH. 0a. “Covered person” means the same as
12defined in section 514J.102.
13 NEW PARAGRAPH. 00a. “Facility” means the same as defined in
14section 514J.102.
15 NEW PARAGRAPH. 0c. “Health carrier” means the same as
16defined in section 514J.102.
17 Sec. 66. Section 514C.34, subsection 1, paragraph c, Code
182021, is amended to read as follows:
19c. “Telehealth” means the delivery of health care services
20through the use of real-time interactive audio and video, or
21other real-time interactive electronic media, regardless of
22where the health care professional and the covered person are
23each located. “Telehealth” does not include the delivery of
24health care services delivered solely through an audio-only
25telephone, electronic mail message, or facsimile transmission.
26 Sec. 67. Section 514C.34, Code 2021, is amended by adding
27the following new subsection:
28 NEW SUBSECTION. 3A. a. A health carrier shall reimburse
29a health care professional and a facility for health care
30services provided by telehealth to a covered person for a
31mental health condition, illness, injury, or disease on the
32same basis and at the same rate as the health carrier would
33apply to the same health care services for a mental health
34condition, illness, injury, or disease provided in person to a
35covered person by the health care professional or the facility.
-31- 1b. As a condition of reimbursement pursuant to paragraph
2“a”, a health carrier shall not require that an additional
3health care professional be located in the same room as a
4covered person while health care services for a mental health
5condition, illness, injury, or disease are provided via
6telehealth by another health care professional to the covered
7person.
8 Sec. 68. EFFECTIVE DATE. This division of this Act, being
9deemed of immediate importance, takes effect upon enactment.
10 Sec. 69. RETROACTIVE APPLICABILITY. This division of
11this Act applies to health care services for a mental health
12condition, illness, injury, or disease provided by a health
13care professional or a facility to a covered person by
14telehealth on or after January 1, 2021.
15DIVISION XXII
16septic tanks
17 Sec. 70. Section 331.301, Code 2021, is amended by adding
18the following new subsection:
19 NEW SUBSECTION. 18. A county shall not require the payment
20of a penalty, fine, or fee due to a resident’s noncompliance
21with rules adopted by the county sanitarian regarding periodic
22septic tank pumping as part of routine maintenance.
23DIVISION XXIII
24emergency volunteer — tax credit
25 Sec. 71. Section 422.12, subsection 2, paragraph c,
26subparagraph (1), Code 2021, is amended to read as follows:
27(1) A volunteer fire fighter and volunteer emergency
28medical services personnel member credit equal to one two
29 hundred fifty dollars to compensate the taxpayer for the
30voluntary services if the volunteer served for the entire
31tax year. A taxpayer who is a paid employee of an emergency
32medical services program or a fire department and who is also
33a volunteer emergency medical services personnel member or
34volunteer fire fighter in a city, county, or area governed
35by an agreement pursuant to chapter 28E where the emergency
-32-1medical services program or fire department performs services,
2shall qualify for the credit provided under this paragraph “c”.
3 Sec. 72. Section 422.12, subsection 2, paragraph d,
4subparagraph (1), Code 2021, is amended to read as follows:
5(1) A reserve peace officer credit equal to one two hundred
6fifty dollars to compensate the taxpayer for services as a
7reserve peace officer if the reserve peace officer served for
8the entire tax year.
9 Sec. 73. RETROACTIVE APPLICABILITY. This division of this
10Act applies retroactively to January 1, 2021, for tax years
11beginning on or after that date.
12DIVISION XXIV
13food banks
14 Sec. 74. Section 423.3, Code 2021, is amended by adding the
15following new subsection:
16 NEW SUBSECTION. 107. The sales price from the sale or
17rental of tangible personal property or specified digital
18products, or services furnished, to a nonprofit food bank,
19which tangible personal property, specified digital products,
20or services are to be used by the nonprofit food bank for a
21charitable purpose. For purposes of this subsection, “nonprofit
22food bank” means an organization organized under chapter 504
23and qualifying under section 501(c)(3) of the Internal Revenue
24Code as an organization exempt from federal income tax under
25section 501(a) of the Internal Revenue Code that maintains
26an established operation involving the provision of food or
27edible commodities or the products thereof on a regular basis
28to persons in need with distribution through food pantries,
29soup kitchens, hunger relief centers, or other food or feeding
30centers that, as an integral part of their normal activities,
31provide meals or food on a regular basis to persons in need.
32DIVISION XXV
33SPECIFIED DIGITAL PRODUCTS SALES AND USE TAX EXEMPTION —
34MUNICIPAL UTILITIES AND RURAL ELECTRIC COOPERATIVES
35 Sec. 75. Section 423.3, subsection 31, paragraph a, Code
-33-12021, is amended to read as follows:
2a. The sales price of tangible personal property or
3specified digital products sold to, or of services furnished,
4and used by or in connection with the operation of any
5municipally owned public utility engaged in selling gas,
6electricity, heat, pay television service, or communication
7service to the general public.
8 Sec. 76. Section 423.3, Code 2021, is amended by adding the
9following new subsection:
10 NEW SUBSECTION. 47B. The sales price from the sale of
11specified digital products sold to and used in connection with
12the operation of a rural electric cooperative.
13DIVISION XXVI
14CONSUMER LOANS
15 Sec. 77. Section 537.2401, subsection 1, Code 2021, is
16amended to read as follows:
171. Except as provided with respect to a finance charge for
18loans pursuant to open-end credit under section 537.2402 and
19loans secured by a certificate of title of a motor vehicle
20under section 537.2403, a lender may contract for and receive
21a finance charge not exceeding the maximum charge permitted
22by the laws of this state or of the United States for similar
23lenders, and, in addition, with respect to a consumer loan,
24a supervised financial organization or a mortgage lender may
25contract for and receive a finance charge, calculated according
26to the actuarial method, not exceeding twenty-one percent
27 the rate authorized under the federal Military Lending Act,
2810 U.S.C. §987(b), per year on the unpaid balance of the
29amount financed. Except as provided in section 537.2403, this
30subsection does not prohibit a lender from contracting for and
31receiving a finance charge exceeding twenty-one percent the
32rate authorized under the federal Military Lending Act, 10
33U.S.C. §987(b), per year on the unpaid balance of the amount
34financed on consumer loans if authorized by other provisions
35of the law.
-34-1DIVISION XXVII
2INDIVIDUAL INCOME TAX — CHECKOFFS
3 Sec. 78. Section 422.12E, subsection 1, Code 2021, is
4amended to read as follows:
51. There shall be allowed no more than four income tax
6return checkoffs on each income tax return. For tax years
7beginning on or after January 1, 2017 2024, when the same four
8income tax return checkoffs have been provided on the income
9tax return for two consecutive tax years, the two checkoffs for
10which the least amount has been contributed, in the aggregate
11for the first tax year and through March 15 after the end of the
12second tax year, are repealed on December 31 after the end of
13the second tax year and shall be removed from the return form.
14 Sec. 79. CHECKOFFS — REPEAL — APPLICABILITY. The
15checkoffs receiving the least amount of contributions for tax
16years 2019 and 2020 shall not be repealed on December 31,
172021. The individual income tax return shall contain the
18same four income tax return checkoffs that were on the 2020
19individual income tax return form until such time the two-year
20contribution calculation for inclusion on the individual income
21tax form is made pursuant to section 422.12E, subsection 1, as
22amended by this division of this Act.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to state taxation matters and economic
27development activities, including future tax contingencies,
28state income tax deductions, tax credits, the state inheritance
29tax, the sales and use tax, disaster recovery housing, energy
30infrastructure, telehealth parity, local regulations, and other
31properly related matters. The bill is divided into divisions.
32DIVISION I — FUTURE TAX CHANGES. The bill amends 2018 Iowa
33Acts, chapter 1161, section 133 (trigger), by striking the two
34conditions necessary for the trigger to occur, and specifies
35the provisions in 2018 Iowa Acts, chapter 1161, sections
-35-199-132, take effect January 1, 2023.
2Currently, the two conditions are necessary for the trigger
3to occur include net general fund revenues for the fiscal year
4ending June 30, 2022, equaling or exceeding $8.3146 billion,
5and also equaling or exceeding 104 percent of the net general
6fund revenues for the fiscal year ending June 30, 2021. If
7these two conditions are not satisfied, current law institutes
8the changes for tax years beginning on or after the January 1
9following the first fiscal year for which the two conditions
10do occur. By striking the “trigger”, the bill sets in motion
11numerous tax changes for tax years beginning on or after
12January 1, 2023, described below.
13INDIVIDUAL INCOME TAX. The tax changes include reducing the
14number of individual income tax brackets from nine to four, and
15modifying the taxable income amounts and tax rates as follows:
16Income over:But not over:Tax Rate:
171)$0$6,0004.40%
182)$6,000$30,0004.82%
193)$30,000$75,0005.70%
204)$75,0006.50%
21For a married couple filing a joint return, the taxable
22income amounts in each bracket above are doubled. Also, the
23taxable income amounts in each bracket above will be indexed to
24inflation and increased in future tax years, beginning in the
25tax year following the 2023 tax year.
26INDIVIDUAL INCOME TAX CALCULATION. Under current law, the
27starting point for computing the Iowa individual income tax is
28federal adjusted gross income before the net operating loss
29deduction, which is generally a taxpayer’s gross income minus
30several deductions. From that point, Iowa requires several
31adjustments and then provides taxpayers with a deduction
32for federal income taxes paid, and the option to deduct a
33standard deduction or itemized deductions. The bill changes
34the starting point for computing the individual income tax
35to federal taxable income, which includes all deductions and
-36-1adjustments taken at the federal level in computing tax,
2including a standard deduction or itemized deductions, and the
3qualified business income deduction allowed for certain income
4earned from a pass-through entity. Because the starting point
5changes to federal taxable income, and federal law does not
6provide for the filing status of married filing separately
7on a combined return, the bill repeals that filing status
8option for Iowa tax purposes. Because net operating loss is
9no longer calculated at the state level, the bill requires a
10taxpayer to add back any federal net operating loss deduction
11carried over from a taxable year beginning prior to the 2023
12tax year, but allows taxpayers to deduct any remaining Iowa net
13operating loss from a prior taxable year. The bill repeals the
14individual alternative minimum tax (AMT), allows an individual
15to claim any remaining AMT credit against the individual’s
16regular tax liability for the 2023 tax year, and then repeals
17the AMT credit in the tax year following the 2023 tax year.
18The bill repeals most Iowa-specific deductions, exemptions,
19and adjustments currently available when computing net income
20and taxable income under Iowa law, including the Iowa optional
21standard deduction and all itemized deductions, and the ability
22to deduct federal income taxes, except for a one-year phase
23out in the 2023 tax year for taxes paid, or refunds received,
24that relate to a prior year. The bill maintains the add-back
25for income from securities that are federally exempt but not
26state-exempt, and for bonus depreciation amounts. The bill
27maintains the general pension exclusion and the deduction
28for income from federal securities. The bill maintains the
29deduction for contributions to the Iowa 529 plan, the Iowa ABLE
30plan, a first-time homebuyer savings account, and an individual
31development account. The bill also maintains the deductions
32for military pension income, military active duty pay, social
33security retirement benefits, certain payments received for
34providing unskilled in-home health care, certain amounts
35received from the veterans trust fund, victim compensation
-37-1awards, biodiesel production refunds, certain wages paid
2to individuals with disabilities or individuals previously
3convicted of a felony, certain organ donations, and Segal
4AmeriCorps education award payments. The bill modifies the
5existing deduction for health insurance payments in Code
6section 422.7(29) to make the deduction only applicable to
7taxpayers who are at least 65 years old and who have net
8income below $100,000. The bill also modifies the existing
9capital gain deduction in Code section 422.7(21) to restrict
10the deduction to the sale of real property used in farming
11businesses by permitting the taxpayer to take the deduction
12if either of the following apply: the taxpayer materially
13participated in the farming business for at least 10 years and
14held the real property for at least 10 years; or the taxpayer
15sold the real property to a relative. The bill expands the
16definition of “relative” to include an entity in which a
17relative of the taxpayer has a legal or equitable interest in
18the entity as an owner, member, partner, or beneficiary. The
19bill provides a new deduction for any income of an employee
20resulting from the payment by an employer, whether paid to
21the employee or a lender, of principal or interest on the
22employee’s qualified education loan. The bill also modifies
23the calculation of net income for purposes of the alternate
24tax calculation in Code section 422.5(3) and (3B), and the tax
25return filing thresholds in Code section 422.13, to require
26that any amount of itemized deduction, standard deduction,
27personal exemption deduction, or qualified business income
28deduction that was allowed in computing federal taxable income
29shall be added back.
30CORPORATE INCOME TAX AND FRANCHISE TAX CALCULATION. Under
31current law, the starting point for calculating the corporate
32income tax and franchise tax is federal taxable income before
33the net operating loss deduction, because net operating loss is
34calculated at the state level. The bill repeals the separate
35calculation of net operating loss at the state level. As a
-38-1result, the bill requires taxpayers to add back any federal
2net operating loss deduction carried over from a taxable year
3beginning prior to the trigger year, but allows taxpayers to
4deduct any remaining Iowa net operating loss from a prior
5taxable year. The bill also repeals most Iowa-specific
6deductions, exemptions, and adjustments currently available
7when computing net income and taxable income under Iowa law.
8The bill maintains the add-back for income from securities
9that are federally exempt but not state exempt, and for bonus
10depreciation amounts. The bill maintains the deductions for
11income from federal securities, for foreign dividend and
12subpart F income, for certain wages paid to individuals with
13disabilities or individuals previously convicted of a felony,
14and for biodiesel production refunds.
15DIVISION II — CHILD DEPENDENT AND DEVELOPMENT TAX CREDITS.
16 Currently, an individual may claim 30 percent of the federal
17child and dependent care credit provided in section 21 of
18the Internal Revenue Code against the individual income tax
19if the individual’s net income is less than $45,000. Under
20the bill, an individual may claim 30 percent of the federal
21child and dependent care credit provided in section 21 of the
22Internal Revenue Code against the individual income tax if the
23individual’s net income is less than $90,000.
24The bill increases the income threshold determining the
25eligibility of a taxpayer for the early childhood development
26tax credit. The bill increases the eligibility threshold from
27a taxpayer whose net income is less than $45,000 per year to
28less than $90,000 per year. By increasing the eligibility
29threshold, taxpayers whose net income is less than $90,000 are
30now eligible to take the early childhood development tax credit
31equaling 25 percent of the first $1,000 which the taxpayer has
32paid to others for early childhood development expenses for
33each dependent ages three through five.
34RETROACTIVE APPLICABILITY. The division applies
35retroactively to tax years beginning on or after January 1,
-39-12021.
2The division takes effect upon enactment.
3DIVISION III — COVID-19 RELATED GRANTS — TAXATION. The
4bill excludes from the calculation of Iowa individual and
5corporate income tax any qualifying COVID-19 grant issued to an
6individual or business by the economic development authority,
7the Iowa finance authority, or the department of agriculture
8and land stewardship.
9Under the bill, a “qualifying COVID-19 grant” includes
10any grant identified by the department of revenue by rule
11that was issued under a grant program administered by the
12economic development authority, Iowa finance authority, or
13the department of agriculture and land stewardship to provide
14financial assistance to individuals and businesses economically
15impacted by the COVID-19 pandemic.
16Under current law, financial assistance grants provided to
17small businesses by the economic development authority under
18the Iowa small business COVID-19 relief grant program are
19excluded from the calculation of Iowa individual and corporate
20income tax.
21The COVID-19 grant income tax exclusion provided in the bill
22is repealed on January 1, 2024, and does not apply to tax years
23beginning on or after that date.
24The division takes effect upon enactment and applies
25retroactively to March 23, 2020, for tax years ending on or
26after that date.
27DIVISION IV — FEDERAL PAYCHECK PROTECTION PROGRAM. Under
28current law, for the tax year 2020 and later, Iowa law fully
29conforms with the federal treatment of forgiven paycheck
30protection program loans and excludes such amounts from net
31income and allows certain deductions for business expenses
32paid using those loans. For fiscal-year filers who received
33paycheck protection program loans during the 2019 tax year,
34current law excludes such amounts from net income, but does
35not allow certain deductions for business expenses paid using
-40-1those loans. The bill fully conforms with federal law for
2those fiscal-year filers who previously were excluded from such
3conformity and allows such filers to take business expense
4deductions using federal paycheck protection program loan
5proceeds that were forgiven.
6DIVISION V — SCHOOL TUITION ORGANIZATION TAX CREDIT. The
7bill changes the school tuition organization tax credit in two
8ways.
9First, the bill modifies the amount of a voluntary cash
10or noncash contribution that may be claimed as a tax credit
11during a tax year. Currently, 65 percent of the amount of the
12voluntary cash or noncash contribution may be claimed as a tax
13credit, subject to the total aggregate amount of credits that
14may be claimed in one calendar year. For tax years beginning
15on or after January 1, 2022, the bill increases the amount of
16the contribution that may be claimed as a tax credit from 65
17percent to 72 percent, for tax years beginning on or after
18January 1, 2023, but before January 1, 2024, the amount of the
19contribution that may be claimed as a tax credit increases from
2072 percent to 78 percent, for tax years beginning on or after
21January 1, 2024, but before January 1, 2025, the amount of the
22contribution that may be claimed as a tax credit increases
23from 78 percent to 85 percent, and for tax years beginning on
24or after January 1, 2025, the amount of the contribution that
25may be claimed as a tax credit increases from 85 percent to 87
26percent.
27Second, the bill increases the maximum amount of allowable
28school tuition organization tax credits that may be claimed in
29the aggregate as follows: beginning in calendar year 2022, the
30maximum amount of allowable credits increases from $15 million
31to $16.5 million; for calendar year 2023, the maximum amount of
32allowable credits increases from $16.5 million to $18 million;
33for calendar year 2024, the maximum amount of allowable credits
34increases from $18 million to $19.5 million; and for calendar
35years beginning on or after January 1, 2025, the maximum amount
-41-1of allowable credits is set at $20 million.
2This division applies retroactively to tax years beginning
3on or after January 1, 2021.
4DIVISION VI — TARGETED JOBS WITHHOLDING CREDIT. The
5bill extends by five years the deadline for entering into
6withholding agreements under the targeted jobs withholding
7credit pilot project from June 30, 2021, to June 30, 2026.
8DIVISION VII — ECONOMIC EMERGENCY FUND — EXCESS MONEYS.
9 The bill provides that after the surplus existing in the
10general fund of the state at the conclusion of a fiscal year
11is appropriated to the cash reserve fund, the elimination of
12Iowa’s GAAP deficit, and the Iowa economic emergency fund as
13provided under current law, an amount equal to not more than
14five percent of the adjusted revenue estimate for the fiscal
15year is transferred to the general fund of the state and any
16remaining moneys are transferred to the taxpayer relief fund.
17This division takes effect July 1, 2022.
18DIVISION VIII — TAXPAYER RELIEF FUND — TAX CREDIT. The
19bill provides that if the amount in the taxpayer relief fund
20equals or exceeds $120 million, the entire balance of the
21taxpayer relief fund is transferred to the Iowa taxpayer relief
22tax credit fund to be used by the department of revenue to
23provide Iowa taxpayer relief tax credits in equal amounts to
24eligible taxpayers who filed individual income tax returns.
25This division takes effect upon enactment and applies
26retroactively to January 1, 2021, for tax years beginning on
27or after that date.
28DIVISION IX — STATE INHERITANCE TAX. The bill
29proportionally reduces over a nine-year fiscal period the rates
30of tax applicable to the state inheritance tax, beginning for
31estates of decedents dying on or after July 1, 2021. The
32bill then repeals the state inheritance tax and the state
33qualified use inheritance tax effective July 1, 2030, for
34property of estates of decedents dying on or after July 1,
352030. Inheritance tax will not be imposed on any property in
-42-1the event of the death of an individual on or after July 1,
22030. The bill directs the Code editor to remove Code chapters
3450 (inheritance tax) and 450B (qualified use inheritance tax)
4from the Code effective July 1, 2040.
5DIVISION X — HIGH QUALITY JOBS — ELIGIBILITY REQUIREMENTS.
6 To be eligible to receive incentives or assistance under the
7high quality jobs program, a business cannot be in the process
8of reducing operations in one community while simultaneously
9apply for assistance under the program. Under current law,
10a reduction in operations within 12 months before or after
11a business submits an application to the high quality jobs
12program is presumed to be a reduction in operations while
13simultaneously applying for assistance under the program.
14Under the bill, the economic development authority (authority)
15cannot presume that a reduction in operations is a reduction
16while simultaneously applying for assistance under the program
17with regard to a business that submits an application on or
18before June 30, 2022, if the business demonstrates to the
19satisfaction of the authority that the reduction in operations
20occurred after March 1, 2020, and that it was a result of the
21COVID-19 pandemic. The authority must consider whether the
22benefit of the project proposed by the business outweighs any
23negative impact related to the reduction in operations. The
24business remains subject to all other eligibility requirements.
25This division of the bill is repealed July 1, 2022.
26DIVISION XI — HOUSING TRUST FUND. Under current law, 30
27percent of the real estate transfer tax receipts paid by county
28recorders to the treasurer of state are transferred to the
29housing trust fund in any one fiscal year, subject to a $3
30million cap; moneys in excess of the cap are deposited in the
31general fund of the state. The bill increases the cap to $7
32million.
33DIVISION XII — HIGH QUALITY JOBS PROGRAM — DAY CARE
34CENTERS. The bill permits the economic development authority
35to consider whether a proposed project under the high quality
-43-1jobs program will include a licensed child care center for use
2by a business’s employees when determining the eligibility of
3the business to participate in the program.
4DIVISION XIII — WORKFORCE HOUSING TAX CREDITS. Code
5section 15.119 sets an aggregate tax credit amount limit for
6certain economic development programs. Under current law, the
7workforce housing tax incentives program administered under
8Code sections 15.351 through 15.356 shall not be allocated
9more than $25 million in tax credits, and of the tax credits
10allocated to this program, $10 million is reserved for
11allocation to qualified housing projects in small cities. This
12division increases the workforce housing tax credit allocations
13from $25 million to $30 million. Of the moneys allocated
14to workforce housing tax credits, the bill increases the tax
15credits reserved for qualified housing projects in small cities
16from $10 million to $15 million.
17DIVISION XIV — DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM
18AND FUND.
19TRANSFERS. The bill permits the authority to transfer
20unobligated moneys in Code section 16.46 (senior living
21revolving loan program fund), 16.47 (home and community-based
22services revolving loan program fund), 16.48 (transitional
23housing revolving loan program fund), or 16.49 (community
24housing and services for persons with disabilities revolving
25loan program fund) to the disaster recovery housing assistance
26fund created in the bill.
27After the prior written consent and approval of the
28governor, the bill permits the executive director of the Iowa
29finance authority to transfer any unobligated moneys in any
30fund created pursuant to Code section 16.5(1)(s), for deposit
31in the fund. The bill waives the prior written consent and
32approval of the director of the department of management to
33transfer the unobligated moneys.
34After prior written approval of the governor, the bill
35permits the director of the Iowa economic development authority
-44-1to transfer any unobligated and unencumbered moneys in any fund
2created pursuant to Code section 15.106A(1)(o), for deposit in
3the fund.
4The bill requires any transfer to be reported to the
5legislative fiscal committee of the legislative council on a
6monthly basis.
7DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — FUND. The
8bill creates a disaster recovery housing assistance fund
9(fund) within the authority. The purpose of the fund is for
10the development and operation of a forgivable loan and grant
11program for homeowners and renters with disaster-affected
12homes, and for an eviction prevention program created in the
13bill. The bill prohibits the authority from using more than
145 percent of the moneys in the fund on July 1 of a fiscal year
15for purposes of administrative costs and other program support
16during the fiscal year.
17The bill directs the authority to establish and administer
18a disaster recovery assistance program (program) and to
19use the moneys in the fund to provide forgivable loans to
20eligible homeowners and grants to eligible renters with
21disaster-affected homes. “Disaster-affected home” is defined
22in the bill as a primary residence that is destroyed or damaged
23due to a natural disaster that occurs on or after the effective
24date of the division, and that is located in a county that due
25to the natural disaster is the subject of a state of disaster
26emergency proclamation by the governor that authorizes disaster
27recovery housing assistance; or a primary residence that is
28destroyed or damaged due to a natural disaster that occurred
29on or after March 12, 2019, but before the effective date of
30the division, and is located in a county that has been declared
31a major disaster by the president of the United States on or
32after March 12, 2019, but before the effective date of the
33division, and is located in a county where individuals are
34eligible for federal individual assistance.
35The authority may enter into an agreement with one or
-45-1more local program administrators to administer the program
2and moneys in the fund may be expended following a state of
3disaster emergency proclamation by the governor that authorizes
4disaster recovery housing assistance or the eviction prevention
5program. “Local program administrator” is defined in the bill
6as cities of Ames, Cedar Falls, Cedar Rapids, Council Bluffs,
7Davenport, Des Moines, Dubuque, Iowa City, Waterloo, and West
8Des Moines; a council of governments whose territory includes
9at least one county that is the subject of the state of
10disaster emergency proclamation by the governor that authorizes
11disaster recovery housing assistance or the eviction prevention
12program; a community action agency as defined in Code section
13216A.91 and whose territory includes at least one county that
14is the subject of the state of disaster emergency proclamation
15by the governor that authorizes disaster recovery housing
16assistance or the eviction prevention program; or a qualified
17local organization or governmental entity as determined by rule
18by the authority.
19To be considered for a forgivable loan or grant under the
20program, the homeowner or renter must register for the disaster
21case management program established pursuant to Code section
2229C.20B. The disaster case manager may refer the homeowner or
23renter to the appropriate local program administrator.
24DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — HOMEOWNERS.
25 To be eligible for a forgivable loan under the program,
26the bill requires a homeowner to own a disaster-affected
27home located in a county that has been proclaimed a state
28of disaster emergency by the governor; the home must have
29sustained damage greater than the damage that is covered by the
30homeowner’s property and casualty insurance policy insuring the
31home plus any other state or federal disaster-related financial
32assistance that the homeowner is eligible to receive; an
33administrator must deem the home suitable for rehabilitation or
34damaged beyond reasonable repair; if the homeowner is seeking
35a forgivable loan for the repair or rehabilitation of the
-46-1homeowner’s disaster-affected home, the home cannot be proposed
2for buyout by the county or city in which the home is located,
3or the disaster-affected home is eligible for a buyout, but
4the homeowner is requesting a forgivable loan for the repair
5or rehabilitation of the homeowner’s disaster-affected home
6in lieu of a buyout; and the assistance does not duplicate
7benefits provided by other disaster assistance programs.
8If a homeowner is referred to an administrator by the
9homeowner’s case manager, the bill allows the authority to
10award a forgivable loan to the eligible homeowner for repair
11or rehabilitation of the disaster-affected home, or for down
12payment assistance on the purchase of replacement housing,
13and the cost of reasonable repairs to be performed on the
14replacement housing to render it decent, safe, sanitary, and
15in good repair. Replacement housing purchased by a homeowner
16cannot be located in a 100-year floodplain. “Decent, safe,
17sanitary, and in good repair” is defined in the bill to mean
18the same as described in 24 C.F.R.§5.703. “Replacement
19housing” is defined in the bill as housing purchased by a
20homeowner to replace a disaster-affected home that is destroyed
21or damaged beyond reasonable repair as determined by a local
22program administrator.
23The authority shall determine the interest rate for the
24forgivable loan.
25If a homeowner who has been awarded a forgivable loan sells
26a disaster-affected home or replacement housing for which the
27homeowner received the forgivable loan prior to the end of the
28loan term, the remaining principal on the forgivable loan shall
29be due and payable.
30DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — RENTERS.
31 To be eligible for a grant under the program, the bill
32requires the local program administrator to either deem
33the disaster-affected home of the renter suitable for
34rehabilitation but unsuitable for current short-term
35habitation, or damaged beyond reasonable repair; and the
-47-1assistance does not duplicate benefits provided by any other
2disaster assistance program.
3DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — REPORT. The
4bill requires the authority to annually submit a report to
5the general assembly detailing the disaster recovery housing
6assistance program.
7EVICTION PREVENTION PROGRAM. The bill requires the
8authority to establish and administer an eviction prevention
9program. Under the eviction prevention program, the authority
10awards grants from the disaster recovery housing assistance
11fund to eligible renters and eviction prevention partners.
12Grants may be awarded upon a state of disaster emergency
13proclamation by the governor that authorizes the eviction
14prevention program. The bill defines “eligible renter” to mean
15a renter whose income meets the qualifications of the program,
16who is at risk of eviction, and who resides in a county that
17is the subject of a state of disaster emergency proclamation
18by the governor that also authorizes the eviction prevention
19program. The bill defines “eviction prevention partner” to
20mean a qualified local organization or governmental entity as
21determined by rule by the authority.
22The bill requires grants awarded to eligible renters to be
23used for short-term financial rent assistance to keep eligible
24renters in the current residence of the renter. Grants awarded
25to eviction prevention partners are to be used to pay for rent
26or services provided to eligible renters for the purpose of
27preventing the eviction of eligible renters.
28DISASTER RECOVERY HOUSING ASSISTANCE PROGRAM — RULES. The
29authority shall adopt rules pursuant to Code chapter 17A to
30implement and administer the program including establishing
31the maximum forgivable loan and grant amounts, the terms of
32forgivable loans, and income qualifications of eligible renters
33in the eviction prevention program.
34DIVISION XV — BROWNFIELD REDEVELOPMENT PROGRAM. Current
35law provides that the economic development authority
-48-1(authority) cannot allocate more than $10 million in tax
2credits in a fiscal year to the brownfield redevelopment
3program (brownfields). The division increases the maximum
4allocation to $15 million. The division provides that tax
5credits that are not awarded or that are revoked (including
6revoked within the previous five years) under brownfields may
7be awarded during the next annual application period, and those
8tax credits do not count against the $15 million tax credit
9maximum.
10Under current law, the definition of “brownfield site”
11excludes a property which has been placed, or is proposed
12for placement, on the national priorities list established
13pursuant to the federal Comprehensive Environmental Response,
14Compensation, and Liability Act, 42 U.S.C. §9601 et seq. The
15division removes this exclusion.
16Under current law, Code section 15.293A, redevelopment tax
17credits, is repealed on June 30, 2021. The division changes
18the repeal date to June 30, 2031, and the repeal date is
19effective upon enactment of the division. Under current law,
20Code section 15.293B, related to the application, review,
21registration, and authorization of projects awarded tax credits
22under brownfields is repealed on June 30, 2021. The division
23changes the repeal date to June 30, 2031, and the repeal date
24is effective upon enactment of the division.
25DIVISION XVI — HIGH QUALITY JOBS AND RENEWABLE CHEMICAL
26PRODUCTION TAX CREDITS. The division reduces the maximum
27amount of tax credits that the economic development authority
28(authority) may allocate to the high quality jobs program for
29the fiscal year beginning July 1, 2021, and for each fiscal
30year thereafter, from $105 million to $70 million.
31DIVISION XVII — BONUS DEPRECIATION. Currently, when a
32business buys equipment and other capital assets, the business
33is allowed to deduct a portion of the cost of such property
34as depreciation over a certain period for federal and state
35individual or corporate income tax purposes. Federal taxpayers
-49-1are allowed to immediately deduct a higher portion of the cost
2of such property by claiming additional first-year depreciation
3(bonus depreciation). Iowa has recently adopted “rolling
4conformity” with federal tax law but did not conform with
5federal bonus depreciation provisions, meaning a taxpayer
6deducts the cost of the equipment or other capital assets by
7claiming depreciation over a longer time period for Iowa income
8tax purposes. The bill applies retroactively by conforming
9Iowa tax provisions with federal bonus depreciation provisions
10for equipment or other capital assets placed in service on or
11after January 1, 2021, for tax years beginning on or after
12that date. By conforming with federal bonus depreciation
13provisions for tax years beginning on or after January 1, 2021,
14Iowa automatically conforms with the federal limitation on
15business interest expense deductions in Code sections 422.7(60)
16and 422.35(27). Currently, if a taxpayer does not claim
17“bonus depreciation”, Iowa does not conform with the federal
18limitation on business expenses.
19DIVISION XVIII — ENERGY INFRASTRUCTURE REVOLVING LOAN
20PROGRAM. The division modifies Code section 476.46, alternate
21energy revolving loan program, to prohibit the Iowa energy
22center from initiating any new loans after June 30, 2021. The
23division also requires that all loan payments received after
24June 30, 2021, be deposited, and any moneys remaining in the
25alternate energy revolving loan fund after June 30, 2021,
26be transferred, to the newly created energy infrastructure
27revolving loan fund.
28The division creates an energy infrastructure revolving
29fund (fund) in the office of the treasurer of state to be
30administered by the Iowa energy center (center). Moneys in
31the fund are to be used to provide financial assistance for
32the development and construction of energy infrastructure,
33including projects as described in the bill. “Energy
34infrastructure” and “financial assistance” are defined in the
35bill.
-50- 1The center is required to establish and administer an energy
2infrastructure revolving loan program (program) to encourage
3the development of energy infrastructure within the state. An
4individual, business, rural electric cooperative, or municipal
5utility located and operating in this state is eligible for
6financial assistance under the program. With the approval of
7the center’s governing board, the authority must determine the
8amount and the terms of all financial assistance awarded to an
9individual, business, rural electric cooperative, or municipal
10utility under the program. All agreements and administrative
11authority are vested in the center’s governing board. The
12authority may use not more than 5 percent of the moneys in
13the fund at the beginning of each fiscal year for purposes of
14administrative costs, marketing, technical assistance, and
15other program support.
16DIVISION XIX — INVESTMENTS IN QUALIFYING BUSINESSES AND
17EQUITY INVESTMENTS IN INNOVATION FUNDS. Under current law,
18the authority must allocate $2 million to investments in
19qualifying businesses and $8 million to equity investments in
20innovation funds (equity investments). The division limits
21the authority’s tax credit allocations for investments in
22qualifying businesses and equity investments to a maximum
23aggregate of $10 million.
24The division requires the authority to determine on or
25before June 30 of each fiscal year the amount of tax credits
26to be allocated to each. In addition, any amount of tax
27credits allocated and not awarded in that fiscal year must be
28reallocated to either investments in qualifying businesses
29or to equity investments for the next fiscal year, and those
30tax credits do not count towards the maximum aggregate of $10
31million. This applies to tax credits allocated on or after the
32fiscal year beginning July 1, 2021, and for each fiscal year
33thereafter.
34The division modifies the maximum amount of an investment
35tax credit that may be issued to a natural person and the
-51-1person’s spouse or dependent from a calendar year basis to a
2fiscal year basis. The maximum amount of tax credits that may
3be issued for equity investments in any one qualifying business
4is also modified from a calendar year to a fiscal year.
5This division of the bill is effective upon enactment.
6DIVISION XX — RURAL ECONOMIC DEVELOPMENT. The bill
7provides for tax incentives for eligible businesses in rural
8communities. “Rural community” is defined in the bill. The
9tax incentives are based upon the number of jobs created or
10retained that pay at least 110 percent of the qualifying wage
11threshold and the amount of the qualifying investment. The tax
12incentives are based upon a schedule as detailed in the bill.
13The bill also details the requirements for a community
14match, based on the size of the community, in order for an
15eligible business to be awarded assistance by the economic
16development authority (authority) from the fund created in Code
17section 15.335B.
18The bill directs the authority to adopt rules to administer
19the high quality jobs program.
20This division of the bill takes effect upon enactment.
21DIVISION XXI — TELEHEALTH — MENTAL HEALTH PARITY. The
22bill requires a health carrier to reimburse a health care
23professional or a facility for health care services for a
24mental health condition, illness, injury, or disease provided
25to a covered person via telehealth on the same basis and at the
26same rate as the health carrier would apply to the same health
27care services provided to the covered person by the health
28care professional or facility in person. “Health carrier” is
29defined in the bill.
30The bill amends the definition of “telehealth” to specify
31that the delivery of health care services via telehealth must
32include real-time interactive audio, video, or electronic
33media, regardless of the location of the health care
34professional or the covered person.
35The bill prohibits a health carrier from requiring an
-52-1additional health care professional to be located in the same
2room as a covered person while health care service for a mental
3health condition, illness, injury, or disease are provided via
4telehealth by another health care professional to the covered
5person.
6This division of the bill is effective upon enactment and
7applies retroactively to health care services for a mental
8health condition, illness, injury, or disease provided to a
9covered person via telehealth on or after January 1, 2021.
10DIVISION XXII — SEPTIC TANKS. The bill prohibits a county
11from requiring the payment of a penalty, fine, or fee due to
12a resident’s noncompliance with rules adopted by the county
13sanitarian regarding periodic septic tank pumping as part of
14routine maintenance.
15DIVISION XXIII — EMERGENCY VOLUNTEER — TAX CREDIT. The
16bill relates to the individual income tax credits available to
17volunteer fire fighters, volunteer emergency medical services
18personnel members, and reserve peace officers.
19The bill increases to $250 from $100 the maximum amount per
20individual of the income tax credits for services performed
21during the year. The tax credit increase applies retroactively
22to tax years beginning on or after January 1, 2021.
23DIVISION XXIV — FOOD BANKS. The bill exempts from the sales
24tax the purchase price from the sale or rental of tangible
25personal property or specified digital products, or services
26furnished, to a nonprofit food bank if the property or services
27are to be used by the nonprofit food bank for a charitable
28purpose. “Nonprofit food bank” is defined in the bill.
29By operation of Code section 423.6, an item exempt from the
30imposition of the sales tax is also exempt from the use tax
31imposed in Code section 423.5.
32DIVISION XXV — SPECIFIED DIGITAL PRODUCTS SALES AND
33USE TAX EXEMPTION — MUNICIPAL UTILITIES AND RURAL ELECTRIC
34COOPERATIVES. The bill exempts from the sales and use tax the
35sales price of specified digital products sold to a municipally
-53-1owned public utility engaged in selling gas, electricity, heat,
2pay television service, or communication service to the general
3public.
4The bill also exempts from the sales and use tax the sales
5price of specified digital products sold to and used in
6connection with the operation of a rural electric cooperative.
7The term “specified digital products” is defined in Code
8section 423.1(55B).
9DIVISION XXVI — CONSUMER LOANS. Currently, except for
10certain loans that are open-end credit transactions or loans
11secured by a certificate of title, a supervised financial
12organization or a mortgage lender may contract for and receive
13a finance charge on a consumer loan, calculated according to
14the actuarial method, not exceeding 21 percent per year on the
15unpaid balance of the amount financed. The bill changes the
16rate a supervised financial organization or a mortgage lender
17may contract for and receive a finance charge on a consumer
18loan to rate not to exceed the maximum rate authorized by the
19federal Military Lending Act, 10 U.S.C. §987(b), which is
20currently 36 percent.
21DIVISION XXVII — INDIVIDUAL INCOME TAX — CHECKOFFS.
22 Currently, there are four checkoffs available against the
23individual income tax — the joint veterans trust fund and the
24volunteer fire fighter preparedness fund checkoff, the fish and
25game protection fund checkoff, the Iowa state fair foundation
26checkoff, and the child abuse prevention program fund checkoff.
27Under current law, when the same four income tax return
28checkoffs have been provided on the individual income tax
29return for two consecutive tax years, the two checkoffs that
30have received the least amount of contributions are repealed.
31The bill does not repeal any of the four checkoffs and
32requires the same four individual income tax checkoffs included
33on the 2020 individual income tax return form be included on
34the individual income tax form until such time the two-year
35contribution calculation for inclusion on the individual income
-54-1tax form is made beginning with the 2024 tax year.
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